Table 3-2 -Refer to Table 3-2

question 49

Multiple Choice

Table 3-2
$\begin{array}{|c|c|c|c|c|}\hline&\text { Labour hours needed to produce one unit of: }&&\text { Amount produced in } 60 \text { hours: }\\\hline & \text { Butter (kg) } & \text { Butter (kg } & \text { Rice (kg) } & \text { Rice (kg) } \\\hline \text { Lee } & 6 & 10 & 15 & 4 \\\hline \text { John } & 3 & 20 & 15 & 4\\\hline\end{array}$
-Refer to Table 3-2.For John the opportunity cost of one kg of rice:

• A)3/4 kg of butter
• B)3/2 kg of butter
• C)4/3 kg of butter
• D)2/3 kg of butter

---

Definitions:

Activity Level

The volume of production or the degree of services provided, which impacts the variable costs and sometimes the efficiency in a business.

Fixed Manufacturing

Costs in manufacturing that do not vary with the level of production, such as rent, salaries, and insurance.

Produced Units

The number of units of product that have been completed during a specific time period, regardless of whether they have been sold.

Factory Overhead

Another term for manufacturing overhead, encompassing all indirect costs involved in the production process.