Answer the Following Questions Using the Information Below:
Kosciuszko Land

question 27

Multiple Choice

Answer the following questions using the information below:
Kosciuszko Land and Snow Company provides the following ABC costing information:
$$\begin{array}{l}\begin{array} { l r c } \text { Activities } & \text { Total Costs } & \text { Activity-cost Drivers } \\\text { Labour hours } & \$ 240000 & 12000 \text { hours } \\\text { Fuel } & \$ 27000 & 9000 \text { litres } \\\text { Invoices } & \$ 30000 & 3750 \text { invoices } \\ { \text { Total costs } } & \$ 1912000 &\end{array}\\\\\text { The above activities used by their three departments are: }\\\\\begin{array} { l c c c } & \text { Lawn Department } & \text { Bush Department } & \text { Ploughing Department } \\\text { Labour hours } & 2500 \text { hours } & 1200 \text { hours } & 4300 \text { hours } \\\text { Fuel } & 1500 \text { litres } & 800 \text { litres } & 3700 \text { litres } \\\text { Invoices } & 1600 \text { invoices } & 400 \text { invoices } & 500 \text { invoices }\end{array}\end{array}$$
-How much of the labour cost will be assigned to the Lawn Department?

• A)$50 000
• B)$30 000
• C)$12 800
• D)None of these answers are correct.

Understand the implications of marginal cost changes on average total cost patterns.

Understand the concept of variable and fixed costs and their implications on total cost.

Comprehend the definitions and calculations of marginal cost (MC) and average total cost (ATC).

Recognize the relationship between output level and various costs (fixed, variable, total, MC, ATC, AVC).

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Definitions:

Constraints

Limitations or restrictions that impact the decision-making process, often used in the context of optimization problems and project planning.

Feasible Region

Within optimization challenges, the collection of all feasible points that meet the criteria of the problem.

Linear Programming

A mathematical methodology for determining the best outcome in a given mathematical model for some list of requirements represented as linear relationships.

Constrained Resources

Resources in limited supply that restrict the ability of an organization to produce goods or services or achieve desired outcomes.