Table 104 Table 104 Lists Data for the Production of Apple IPods

question 54

Multiple Choice

Table 10.4
$$\begin{array} { | c | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Quantity of } \\\text { labour }\end{array} & \text { Output } & \boldsymbol { M P } _ { \mathbf { L } } & \text { Price } & \begin{array} { c } \text { Total } \\\text { Revenue }\end{array} & \boldsymbol { M R P } _ { \mathbf { L } } & \text { Wage } \\\hline 0 & 0 & - & \$ 200 & \$ 0 & - & \$ 500 \\\hline 1 & 6 & 6 & 180 & & & 500 \\\hline 2 & 11 & 5 & 160 & & & 500 \\\hline 3 & 15 & 4 & 140 & & & 500 \\\hline 4 & 18 & 3 & 120 & & & 500 \\\hline 5 & 20 & 2 & 100 & & & 500 \\\hline 6 & 21 & 1 & 80 & & & 500 \\\hline\end{array}$$ Table 10.4 lists data for the production of Apple iPods. Apple is assumed to be a price maker, so to increase its sales of iPods the firm must lower its price. MP_L and MRP_L refer to the marginal product of labour and the marginal revenue product of labour, respectively.
-Refer to Table 10.4.The quantity of labour and marginal revenue product of labour that will maximise the profit Apple would earn from selling iPods are _________,respectively.

• A) 2 and $160
• B) 3 and $340
• C) 2 and $680
• D) 3 and $140

---

Definitions:

Indirect Labor Cost

Costs related to employees who assist in the production process but do not actively work on the product, such as maintenance staff and supervisors.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, depreciation, and supervision expenses, not directly tied to specific product units.

Job-order Costing System

An accounting method that assigns costs to specific production batches or projects, tracking the direct and indirect costs involved.

Job Cost Sheet

A form that records the direct materials, direct labor, and manufacturing overhead cost charged to a job.