Exhibit 34-6 -Refer to Exhibit 34-6.The Opportunity Cost of 1 Unit of 1

question 22

Multiple Choice

Exhibit 34-6
-Refer to Exhibit 34-6.The opportunity cost of 1 unit of wine in terms of units of cheese is __________ for country B.

• A)15
• B)10
• C)5

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Definitions:

Manufacturing Overhead Costs

All indirect costs associated with the production process, such as utilities, rent, and salaries for non-direct labor.

Actual Manufacturing Overhead Costs

The real costs incurred from indirect manufacturing expenses such as utilities, rent, and salaries not directly tied to production.

Specific Job

A particular task or project within a business that requires specific skills or expertise, often related to job costing in accounting.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated by dividing estimated overhead costs by an allocation base, such as direct labor hours.