The Widget Company Has the Following Production Function

question 98

Multiple Choice

The Widget Company has the following production function.

If widgets sell for $6 each and the wage rate is $33,how many workers will the company hire?

• A)0
• B)1
• C)2

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Definitions:

Allocation

Allocation involves distributing or assigning costs, resources, or revenues among various accounts, departments, or products based on specific criteria or formulas.

Journal Entry

A record in accounting that represents the recording of a financial transaction, consisting of debits and credits that must balance.

Manufacturing Overhead Costs

Indirect costs related to manufacturing, including costs associated with operating the factory outside of direct materials and labor.

Machine-Hours

The total operational hours of machinery used in the production process, often used as a basis for allocating manufacturing overhead costs.