The Following Table Shows That in One Day Poultry Farmers

question 42

Multiple Choice

The following table shows that in one day poultry farmers in Arkansas can produce 3 cartons of eggs, while poultry farmers in Idaho can produce 2 cartons of eggs. It takes Arkansas potato farmers one day to produce 30 tons of potatoes, while Idaho potato farmers produce 10 tons of potatoes in that same time.Table 20.4

-Refer to Table 20.4. Producing 1 more crate of eggs would require Arkansas to:

• A)give up one-fifth of a ton of potatoes.
• B)give up 10 tons of potatoes.
• C)give up 5 tons of potatoes.
• D)give up one-tenth of a ton of potatoes.
• E)give up 2 tons of potatoes.

---

Definitions:

Standard Cost Systems

Accounting systems that use standards for each element of manufacturing cost entering into the finished product.

Product Costs

The total of direct materials, direct labor, and manufacturing overhead allotted to a product, representing the cost to produce goods.

Volume Variance

The difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual production achieved during the period.

Normal Capacity

The average level of operational output that a company can sustain with its current resources, over a specific period and under normal conditions.