Table 24 Table 2

question 108

Multiple Choice

Table 2.4 Table 2.4 shows the output per week of two jewellers, Serena and Haley.They can either devote their time to making bracelets or making necklaces.
-Refer to Table 2.4.What is Haley's opportunity cost of making a necklace?

• A)3/4 of a bracelet
• B)3 bracelets
• C)1 1/3 necklaces
• D)2 necklaces

---

Definitions:

Fixed Manufacturing Overhead

Costs that do not change with the level of manufacturing output, including salaries of managers and depreciation of factory equipment.

Direct Labor-Hours

The total hours of labor directly involved in producing goods or providing services.

Direct Labor Rate

The cost per hour for labor directly involved in the production of goods or services.

Production Budget

A budget outlining the number of units that must be produced within a period to meet both sales and inventory demands.