Two Friends,Monica and Chandler,enjoy Baking Bread and Making Apple Pies

question 63

Multiple Choice

Two friends,Monica and Chandler,enjoy baking bread and making apple pies.Monica takes two hours to bake 1 loaf of bread and one hour to make 1 pie.Chandler takes four hours to bake 1 loaf of bread and four hours to make 1 pie.
-What is Monica's opportunity cost of baking 1 pie?

• A) 2 pies
• B) 1 pie
• C) 1 loaf of bread
• D) 1/2 loaf of bread
• E) 2 loaves of bread

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Definitions:

Variable Overhead Efficiency Variance

This measures the difference between the actual variable overhead costs incurred and the standard costs expected for the actual production level achieved, pertaining to efficiency in managing variable overheads.

Machine-Hours

The total operational hours recorded for all machines within a production process, serving as a basis for calculating machine-related costs and efficiencies.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and salaries for management.

Direct Labor-Hours

Direct labor-hours are the total hours worked by employees directly involved in manufacturing a product or delivering a service.