In the O'Donnell Manufacturing Company, at an Activity Level of 80,000

question 80

Multiple Choice

In the O'Donnell Manufacturing Company, at an activity level of 80,000 machine hours, total overhead costs were $223,000. Of this amount, utilities were $48,000 (all variable) and amortization was $60,000 (all fixed) . The balance of the overhead costs consisted of maintenance cost (mixed) . At 100,000 machine hours, maintenance costs were $130,000.
Assume that all of the activity levels mentioned in this problem are within the relevant range.

-What is the total fixed overhead cost for O'Donnell?

• A) $55,000.
• B) $60,000.
• C) $115,000.
• D) $130,000.

Identify the relationship between marginal product, total product, and average product.

Understand the principle of diminishing marginal returns.

Explain the behaviors of marginal, average, and total products as inputs vary.

Identify the point where marginal product equals average product.

---

Definitions:

Chlamydia

A common sexually transmitted infection caused by the bacterium Chlamydia trachomatis.

Biological Sexism

The inappropriate and unjustified discrimination or differentiation based on biological differences between males and females.

Sexually Transmitted Infections

Conditions that are mainly passed on through sexual interactions, involving various types of microorganisms like viruses, bacteria, and parasites.

Vulnerable

The state of being open to harm, damage, or attack due to various factors such as social, economic, or environmental conditions.