English Corporation Analyzed the Relationship Between Total Factory Overhead and Changes

question 77

Multiple Choice

English Corporation analyzed the relationship between total factory overhead and changes in direct labour hours.It found the following:
Y = $6,000 + $6X

What is the Y in the equation an estimate of?

• A)total variable costs
• B)total direct labour hours
• C)total factory overhead
• D)total fixed costs

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Definitions:

Economic Rent

The excess payment made to or income received by a factor of production over what would be needed to keep that factor in its current use.

Wage Rates

The standard amount of compensation individuals receive in exchange for their labor, usually expressed per hour or year.

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

MRP Curves

Marginal Revenue Product curves, which depict the additional revenue generated by employing one more unit of a resource, such as labor or capital.