$$\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 20 \\2 & 18 \\3 & 16 \\4 & 14 \\5 & 12\end{array}$$

question 218

Multiple Choice

$$\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 20 \\2 & 18 \\3 & 16 \\4 & 14 \\5 & 12\end{array}$$
-If the marginal cost were $12,how many units of output would this firm produce?

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Departmental Factory Overhead Rate

A rate used to allocate indirect manufacturing costs to different departments within a factory.

Direct Labor Hours

The total time workers spend producing goods or providing services that can be directly attributed to a specific product or service.

Cutting and Sewing

The process involved in the making of garments, which includes the cutting of fabric according to patterns and sewing them together to create clothing.

Activity-based Costing

A method of accounting that assigns costs to specific activities based on their use of resources, providing more accurate product costing.