Below Is Some Hypothetical Data for the Countries of Canada

question 38

Multiple Choice

Below is some hypothetical data for the countries of Canada and Mexico.(Assume that Canada has 10 million workers per month available and Mexico has 20 million. )
Canada's Production Possibilities
(Output in millions of bushels per month)
Mexico's Production Possibilities
(Output in millions of bushels per month)
Output Before Trade
(Output in millions of bushels per month)

-Refer to the information above to answer this question.What is the opportunity cost of 1 bushel of rye in Mexico?

• A)0.5 bushels of beans.
• B)1 bushel of beans.
• C)2 bushels of beans.
• D)15 bushels of beans.
• E)20 bushels of beans.

---

Definitions:

Variable Factory Overhead Controllable Variance

The difference between actual variable overhead incurred and the expected (or budgeted) variable overhead based on standards set by management.

Standard Labor Hours

The estimated amount of time expected to produce a unit of output under normal conditions.

Overhead

Indirect costs related to the day-to-day running of a business, excluding direct costs like labor and materials.

Unfavorable Volume Variance

A cost variance that occurs when the actual volume of production or sales negatively deviates from expected volumes, often leading to higher costs or lower profits.