If the Exchange Rate Is 2 Brazilian Reals Per Dollar

question 52

Multiple Choice

If the exchange rate is 2 Brazilian reals per dollar and a meal in Rio costs 20 reals,then how many dollars does it take to buy a meal in Rio?

• A)40 and your purchase will increase Brazil's net exports.
• B)10 and your purchase will increase Brazil's net exports.
• C)40 and your purchase will decrease Brazil's net exports.
• D)10 and your purchase will decrease Brazil's net exports.

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and management salaries, not directly tied to direct materials or direct labor.

Predetermined Overhead Rate

A rate used in cost accounting to allocate overhead costs based on an estimated activity level.

Direct Labor-hours

The hours that workers contribute directly towards the manufacture of goods over a specified period.

Fixed Manufacturing Overhead

Costs associated with production that do not vary with the level of output, such as depreciation of machinery and the salary of the factory manager.