Figure 3-2 -Refer to Figure 3-2. Assume That Both Paul and Cliff

question 128

Multiple Choice

Figure 3-2
-Refer to Figure 3-2. Assume that both Paul and Cliff divide their time equally between the production of corn and wheat, and they do not trade. If they were the only producers of corn and wheat, what would the total production of wheat and corn be?

• A) 7 bushels of wheat and 8 bushels of corn
• B) 8 bushels of wheat and 7 bushels of corn
• C) 9 bushels of wheat and 6 bushels of corn
• D) 18 bushels of wheat and 12 bushels of corn

---

Definitions:

Period Cost

Expenses that are not directly tied to the production of goods and are charged to the time period in which they are incurred.

Manufacturing Company

A type of company that uses raw materials, parts, and components to assemble finished goods.

Direct Labor

The labor costs directly tied to the production of goods or services, including wages of workers directly involved in manufacturing.

Factory Employees

Workers employed in a manufacturing setting, responsible for the production of goods.