Use the Following to Answer Question

question 135

Multiple Choice

Use the following to answer question:
-(Table: Output and Costs) Use Table: Output and Costs.When output is 3,average total cost equals:

• A)$13.
• B)$10.
• C)$8.
• D)$17.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, depreciation on equipment, and factory rent.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a selected activity base such as machine hours or labor hours.

Direct Labor-Hours

The full extent of hours dedicated by employees who are directly integrated into the production process.

Manufacturing Overhead

All indirect factory-related costs incurred during the production process, excluding direct materials and direct labor costs.