The Dexon Company Makes and Sells a Single Product Called

question 12

Multiple Choice

The Dexon Company makes and sells a single product called a Mip and uses a standard costing system. The following standards have been established for one unit of Mip: There were no inventories of any kind on August 1. During August, the following events occurred:
Purchased 15,000 board feet at the total cost of $24,000.
Used 12,000 board feet to produce 2,100 Mips.
Used 1,700 hours of direct labor time at a total cost of $20,060.
-To record the incurrence of direct labor cost and its use in production, the general ledger would include what entry to the Labor Rate Variance account?

• A) $240 credit
• B) $240 debit
• C) $340 debit
• D) $340 credit

Differentiate between a tariff and other forms of trade barriers and understand their impact on government revenue.

Calculate the opportunity cost of producing different goods in a specialization scenario.

Determine which product a country has a comparative advantage in producing.

Explain the main reasons for a trade deficit.

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Definitions:

Human Resources

The division within a company that focuses on the recruitment, management, and direction of people who work in the organization.

Service

The action of helping or doing work for someone, often referring to activities provided by companies to fulfill customer needs aside from tangible products.

Operations

Encompasses all the activities and processes involved in running a business effectively, focusing on producing goods and providing services efficiently.