Answer the Question(s)below Based on the Information in the Following

question 3

Multiple Choice

Answer the question(s) below based on the information in the following table,where the numbers represent the number of labor hours it will take to produce a unit of the given good.
$$\begin{array} { | c | c | c | } \hline & \text { Spain } & \text { France } \\\hline \text { Grapes } & 3 & 9 \\\hline \text { Textiles } & 1 & 2 \\\hline\end{array}$$
-Refer to the table above.France will gain from trade so long as the international price of grapes measured in terms of textiles is below

• A)$15.
• B)3.
• C)5.
• D)8.

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Definitions:

Direct Labour

The work effort provided by employees who are directly involved in the production of goods or delivery of services.

Manufacturing Overhead Budget

A financial plan that estimates the expected indirect production costs, excluding direct materials and direct labor.

Activity Base

A measure or statistic that is used as the basis for allocating costs in activity-based costing.

Overapplied Factory Overhead

The condition where the allocated factory overhead costs exceed the actual factory overhead expenses.