Becky Works on the Assembly Line of a Manufacturing Company

question 18

Multiple Choice

Becky works on the assembly line of a manufacturing company where she installs a component part for one of the company's products.She is paid $16 per hour for regular time and time and a half for all work in excess of 40 hours per week.
-Becky works 42 hours during a week in which there was no idle time.The allocation of Becky's wages for the week between direct labor cost and manufacturing overhead cost would be:

• A)Choice A
• B)Choice B
• C)Choice C
• D)Choice D

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Definitions:

Money Expenditures

The total amount of money spent by individuals, firms, or governments on goods and services within a specific period.

Implicit Costs

The opportunity costs that arise from using resources that could have been employed in an alternative use, not directly paid in a financial form.

Normal Profit

The minimum profit necessary for a company to remain in business, equal to the opportunity cost of capital and entrepreneurial effort not invested elsewhere.

Entrepreneur's Talent

The unique set of skills, creativity, and determination that an entrepreneur brings to identifying opportunities and building a business.