Table 72 Shows Labor and the Quantity of Shoes Produced by by a Firm

question 20

Multiple Choice

Table 7.2 shows labor and the quantity of shoes produced by a firm. Given the information in the table below, _____ is the marginal product of the third unit of labor.​ ​
Table 7.2
​

• A)45 pairs of shoes
• B)25 pairs of shoes
• C)15 pairs of shoes
• D)75 pairs of shoes
• E)50 pairs of shoes

---

Definitions:

Overapplied Overhead

A situation where the allocated manufacturing overhead cost is more than the actual overhead costs incurred.

Total Manufacturing Costs

The aggregate of all costs involved in the production of a product, including direct materials, direct labor, and overhead.

Predetermined Overhead Rate

A rate calculated before a period begins, based on estimated overhead costs and activity levels, used to allocate overhead costs to products.

Direct Labor

The labor costs directly tied to the production of goods or services, involving tasks that specifically contribute to creating the final product.