Table 3-22 Assume That Zimbabwe and Portugal Can Switch Between Producing Toothbrushes

question 156

Multiple Choice

Table 3-22
Assume that Zimbabwe and Portugal can switch between producing toothbrushes and producing hairbrushes at a constant rate.
-Refer to Table 3-22. Suppose Zimbabwe decides to increase its production of toothbrushes by 10. What is the opportunity cost of this decision?

• A)0.3 hairbrush
• B)3 hairbrushes
• C)30 hairbrushes
• D)100 hairbrushes

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Definitions:

Underapplied Manufacturing Overhead

Underapplied manufacturing overhead occurs when the allocated manufacturing overhead costs are less than the actual costs incurred, indicating a shortfall that needs to be addressed in financial accounts.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs exceed the actual overhead costs incurred.

Adjusted Cost

The net cost of an asset after adjustments for factors such as depreciation, improvements, or disposals, used in financial and tax reporting.

Cost of Goods Manufactured

Cost of Goods Manufactured (COGM) is the total production cost of goods completed during a specific period, including materials, labor, and overhead costs.