Exhibit 10-1
Flatland Company Applies Fixed Manufacturing Overhead Costs to Products

question 14

Multiple Choice

Exhibit 10-1
Flatland Company applies fixed manufacturing overhead costs to products based on direct labor hours.Information for the month of April appears below.Flatland expects to produce and sell 18,000 units for the month.
Below is budget information for Flatland Company.
$$\begin{array} { l l } \text { Budgeted fixed overhead costs } & \$ 270,000 \\\text { Budgeted direct labor hours } & 90,000 \text { hours } \\\text { Standard direct labor hours per unit } & 5 \text { hours per unit } \\\text { Actual production } & 17,000 \\\text { Actual fixed overhead costs } & \$ 280,000\end{array}$$
-Refer to Exhibit 10-1.Based on this information,what is the standard cost per direct labor hour (rounded to the nearest cent) ?

• A)$5.29
• B)$3.11
• C)$3.00
• D)$15.00
• E)None of the answer choices is correct.

Interpret the law of comparative advantage and its implications for productivity and trade.

Analyze scenarios to determine individuals’ or countries’ comparative and absolute advantages.

Understand the concept of absolute and comparative advantage in economic transactions.

Distinguish between absolute advantage and comparative advantage.

---

Definitions:

Smoke-Free Workplaces

Work environments where the use of smoking products, such as cigarettes, is prohibited to ensure the health and safety of all employees.

Worker Satisfaction

The extent to which employees are content with their jobs, including aspects such as conditions, rewards, and recognition.

Smoking Prevalence

The proportion of individuals in a population who are current smokers.

Weight Gain

An increase in body weight, which can result from an excess of calorie intake over calorie expenditure.