Mark and Charles Are Roommates at College

question 115

Multiple Choice

Mark and Charles are roommates at college.Each has written a 25-page term paper for the same English class.They are equally poor typists.Charles types his own paper and gets paid by Mark to type his, too.On the basis of the information given, which one of the following must be true?

• A)Mark is wealthier than Charles.
• B)Mark needs more time to study than Charles.
• C)Charles hates typing.
• D)Mark and Charles have different utilities for typing but place the same value on time.
• E)Mark's opportunity cost of typing is higher than Charles's.

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Definitions:

Source Document

A piece of evidence, such as an invoice or receipt, that records a financial transaction.

Manufacturing Overhead-Applied

Indirect costs related to manufacturing that are assigned to products based on a predetermined rate.

Overhead Applied Rate

A rate calculated to allocate indirect costs to cost objects based on a predetermined formula.

Direct Labor Hours

The total time workers or employees spend directly working on goods or services that are being produced.