Al's Production Function for Deer Is F(x₁, X₂)= (2x₁

question 10

Multiple Choice

Al's production function for deer is f(x₁, x₂) = (2x₁ + x₂) ^1/2, where x₁ is the amount of plastic and x₂ is the amount of wood used.If the cost of plastic is $4 per unit and the cost of wood is $3 per unit, then the cost of producing 5 deer is

• A)$55.
• B)$10.
• C)$50.
• D)$75.
• E)$15.

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Definitions:

Direct Labor Variance

The difference between the actual labor costs incurred and the standard or expected costs for the labor to produce a certain amount of goods.

Materials Quantity Variance

The variance between the real amount of materials utilized in manufacturing and the anticipated standard amount, times the standard unit cost.

Overhead Variance

The difference between the actual overhead costs incurred and the standard or expected overhead costs.

Direct Materials Price Variance

Direct materials price variance is the difference between the actual cost of direct materials and the standard cost, showing how much more or less was spent on purchasing materials.