For the Production Combination of 0 American and 400 British

question 75

Multiple Choice

For the production combination of 0 American and 400 British, which resource is "slack" (not fully used) ?

• A)Colombian beans (only)
• B)Dominican beans (only)
• C)both Colombian beans and Dominican beans
• D)neither Colombian beans nor Dominican beans
• E)cannot be determined exactly

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Definitions:

Actual Manufacturing Overhead Cost

The actual costs incurred for indirect manufacturing expenses, such as utilities, rent, and maintenance.

Year

A period of time consisting of 12 months or 365 days, used as a basic unit for measuring time in relation to the earth's orbit around the sun.

Cost of Goods Available for Sale

The total cost of inventory that a business has ready for sale, comprising both beginning inventory plus the cost of goods manufactured.

Overapplied

A situation where the allocated manufacturing overhead cost exceeds the actual manufacturing overhead costs incurred, resulting in an apparent surplus.