Vektek, Inc. uses job order costing and thinks machine hours is the best activity base to assign manufacturing overhead. The estimate of annual overhead costs for its jobs was $2,050,000. The budgeted machine hours for all jobs for the year totaled 20,000. The company used 1,000 hours of processing on Job No. B12 during the period. How much overhead should be applied to Job No. B12

Brian has just finished college. he wants to set up a small business to make and sell fireworks. he registers his company and acquires a license from the government. he finds that most of his competitors are selling fireworks at an extremely low price. he would like to make more money, so he decides to innovate and develop better fireworks. he sells his fireworks at a higher price, and they are a huge hit with the customers. after a few years, he earns enough profit to set up a bigger fireworks factory that complies with the government’s health and safety regulations. he even starts exporting fireworks overseas. which type of economy does this scenario describe?