Table 13-6 Denmark and Belize Can Produce Both Clocks and Both

question 77

Multiple Choice

Table 13-6

Denmark and Belize can produce both clocks and hats.Table 13-6 shows the production and consumption quantities without trade,and the production numbers with trade.
-Refer to Table 13-6.Which country has an absolute advantage in producing hats?

• A)Denmark
• B)Belize
• C)both countries
• D)neither country

---

Definitions:

Overhead Applied

A costing method that assigns an estimated amount of factory overhead costs to individual units of production based on a predetermined rate.

Job P513

A specific project, order, or batch identified by the code P513 within a job costing system.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual jobs or products.

Direct Labor-Hour

An indicator of the cumulative hours employees dedicated to the manufacturing process have worked.