Figure 3-1 -Refer to Figure 3-1.Assume That Cliff and Paul Were Both

question 82

Multiple Choice

Figure 3-1

-Refer to Figure 3-1.Assume that Cliff and Paul were both producing wheat and corn,and each was dividing their time equally between the two.Then they decide to specialize in the product they have a comparative advantage in and trade 3 bushels of wheat for 3 bushels of corn.What would Cliff now be able to consume

• A)4 bushels of wheat and 3 bushels of corn
• B)3 bushels of wheat and 4 bushels of corn
• C)3 bushels of wheat and 3 bushels of corn
• D)2 bushels of wheat and 3 bushels of corn

---

Definitions:

Finished Product

A good that has completed the manufacturing process and is ready to be sold to customers.

Direct Labor Variance

The difference between the actual labor costs incurred and the standard or expected costs for the labor to produce a certain amount of goods.

Materials Quantity Variance

The variance between the real amount of materials utilized in manufacturing and the anticipated standard amount, times the standard unit cost.

Overhead Variance

The difference between the actual overhead costs incurred and the standard or expected overhead costs.