Refer to Figure 19

question 3

Multiple Choice

Refer to Figure 19.2. The total utility of five apples is

• A) 1 utils.
• B) 17 utils.
• C) 18 utils.
• D) 20 utils.

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Definitions:

Plantwide Overhead Rate

An overhead allocation rate applied uniformly to all products or services based on overall plant activity, ignoring individual departmental differences.

Direct Labor-Hours

Refers to the measurable amounts of work effort contributed directly by laborers on the manufacturing floor towards the production of goods.

Manufacturing Departments

Specialized subdivisions within a manufacturing facility where different stages of the production process are carried out.

Markup

A term used in accounting and finance to describe the difference between the cost of a good or service and its selling price.