Acompany incurs $3,600,000 of overhead each year in three activities: processing, packaging, and testing. the company performs 800 processing transactions, 200,000 packaging transactions, and 2,000 tests per year in producing 400,000 drums of oil and 600,000 drums of sludge. the following data are available: activities expected use of driver cost processing 800 $1,500,000 packaging 200,000 1,500,000 testing 2,000 600,000 production information for the two products is as follows: oil sludge activities expected use of driver expected use of driver processing 300 500 packaging 120,000 80,000 testing 1,600 400 the amount of overhead assigned to oil using abc isa. $1,800,000.
b. $1,657,500.
c. $1,942,500.
d. $1,380,000.

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?