-Refer to Table 3

question 37

Multiple Choice

-Refer to Table 3.2,which shows some costs and benefits of having your car repaired.Suppose you use your car to deliver pizzas.If you earn $10 per hour delivering pizzas,what is the net benefit of 3 hours of car repairs?

• A) $875
• B) $1540
• C) $905
• D) There is not enough information to determine the net benefits

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Definitions:

Work-in-Process Inventory

Goods in production but not yet completed; part of a company's inventory.

Direct Labor Costs

The wages or salaries paid to employees directly involved in the production of goods or services.

Overhead Costs

Expenses related to the day-to-day operations of a business that are not directly tied to a specific product or service.

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including labor, material, and overhead costs.