Use the Table Below to Answer the Following Questions

question 9

Multiple Choice

Use the table below to answer the following questions.
Table 11.3.2

-Refer to Table 11.3.2, which gives Tania's total cost schedule. When output increases from 8 to 12 teapots, the marginal cost of one of the 4 teapots is

• A)$20.
• B)$5.
• C)$1.
• D)$6.67.
• E)$2.

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Definitions:

Overhead Rate

A measure used in cost accounting to allocate overhead costs to produced units, typically expressed as a percentage or a ratio.

Predetermined Overhead Rate

A rate calculated before the period begins, used to allocate manufacturing overhead costs to individual units of production based on a specific activity base.

Direct Labor Costs

Expenses related to employees who are directly involved in the production of goods or services, as opposed to administrative or managerial staff.

Factory Overhead

Indirect costs associated with manufacturing, including utilities, maintenance, and salaries of supervisors, not directly involved in production.