Table 2-10 Table 2-10 Shows the Output Per Day of Two Pet

question 131

Multiple Choice

Table 2-10

Table 2-10 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats.
-Refer to Table 2-10.Which of the following statements is true?

• A)Horace has a comparative advantage in both tasks.
• B)Tammi has a comparative advantage in both tasks.
• C)Horace has a comparative advantage in grooming dogs and Tammi in bathing cats.
• D)Horace has a comparative advantage in bathing cats and Tammi in grooming dogs.

---

Definitions:

Cash Account

An account that records cash transactions, including cash receipts and disbursements.

Direct Labor Costs

Expenses directly tied to the production of goods or services, which include wages and benefits paid to employees who physically produce a product.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, weighted by the standard labor rate.

Labor Rate Variance

The difference between the actual hourly labor cost and the standard or budgeted hourly labor cost, multiplied by the total hours worked.