What best describes the income effect? Select the correct answer below: The state in which the ratio of the prices of goods is equal to the ratio of the marginal utilities. The idea that consumers replace costly goods with more affordable goods as prices change. The idea that a higher price means the buying power of income has been reduced. A decision to consume a specific combination of goods to optimize satisfaction.

Moody corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. at the beginning of the year, the company made the following estimates: machine-hours required to support estimated production 100,000 fixed manufacturing overhead cost $ 650,000 variable manufacturing overhead cost per machine-hour $ 3.00 required: 1. compute the plantwide predetermined overhead rate. 2. during the year, job 400 was started and completed. the following information was available with respect to this job: direct materials $ 450 direct labor cost $ 210 machine-hours used 40