Question 1: During the month of July, McElroy Company's direct labor cost totaled $36,000, and direct labor cost was 60% of prime cost. If total manufacturing costs during July were $85,000, the manufacturing overhead was:
a. $60,000
b. $25,000
c. $30,000
d. $51,000
Question 2: Suppose that the price of Product A falls from $20 to $15. In response, the quantity demanded of A increases from 100 to 120 units. The quantity demanded for Product B increases from 200 to 300. Calculate the arc cross elasticity between Product B and Product A. Is B a substitute or complement for A? Explain. Does Product A follow the "law of demand?" Explain
Question 3: Suppose that the marginal product of labor is: MP = 100 - L, where L is the number of workers hired. You can sell the product in the marketplace for $50 per unit and the wage rate for labor is $100. How many workers should you hire?