Mickley Company calculates its predetermined overhead rate on the basis of direct labor hours. At the beginning of the period, Luthan estimated $280,000 of total manufacturing overhead cost and estimated an activity level of 20,000 direct labor-hours. Its direct labor wage rate is $12.00 per hour. The following information pertains to Job A-500: Direct materials $230
Direct labor hours worked 9
Required:
1. What is the predetermined overhead rate?
2. What is the total manufacturing cost assigned to Job A-500?
3. If Job A-500 consists of 40 units, what is the average cost assigned to each unit included in the job? (Round your answer to 2 decimal places.)

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3. saving two consumers, larry and jeff, have utility functions defined over the two periods of their lives: middle age (period zero) and retirement (period 1). they have the same income in period 0 of m dollars and they will not earn income in period 1. the interest rate they face is r. larry’s and jeff’s utility functions are as follow. = 0.5 + 0.5 and = 0.5 + 0.5 for each person is between zero and one and represents each consumer’s temporal discount econ 340: intermediate microeconomics. ben van kammen: purdue university. rate. a. write the budget constraint that applies to both jeff and larry in terms of consumption in each period and ), interest rate, and m. b. what is larry’s and what is jeff’s marginal rate of intertemporal substitution? c. what is the slope of the budget constraint? d. write each consumer’s condition for lifetime utility maximization. e. re-arrange the conditions from part (d) to solve for the ratio, . f. if > which consumer will save more of his middle age income? g. if > 1 1+ , in which period will larry consume more: = 0 or = 1?

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