Refer to the Information Provided in Figure 19

question 4

Multiple Choice

Refer to the information provided in Figure 19.1 below to answer the questions that follow.
Figure 19.1
-Refer to Figure 19.1.The opportunity cost of producing a bushel of soybeans in the United States is

• A)half a bushel of alfalfa.
• B)1 bushel of alfalfa.
• C)2 bushels of alfalfa.
• D)300 bushels of alfalfa.

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Definitions:

Direct Labor-Hours

The total number of labor hours worked by employees who are directly involved in the manufacturing process.

Job-Order Costing System

An accounting system that accumulates costs per job rather than per time period, used in industries where goods are custom-made.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a certain activity.

Variable Manufacturing Overhead

Costs that fluctuate with production volume, such as utilities and materials used in the production process.