Use the Following Information to Answer the Questions

question 108

Multiple Choice

Use the following information to answer the Questions:
Tom and Huck need to paint a fence and agree to use a modification of the divide-and-choose procedure to make a fair division of the chore. The boys' views of the fence are shown below. (Remember, each boy wants to end up with the smallest possible amount to paint.)
-If Tom divides and Huck chooses, how many units of fence will Tom think each boy is painting?

• A) Tom paints 11 and Huck paints 11.
• B) Tom paints six and Huck paints 16.
• C) Tom paints 16 and Huck paints six.
• D) Tom paints 12 and Huck paints 10.

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Definitions:

Assembly Department

A section of a manufacturing facility where components are put together to form a finished product.

Single Plantwide Factory Overhead Rate

A single rate used to allocate factory overhead costs to products, calculated by dividing total overhead costs by a base, usually total direct labor hours or machine hours.

Direct Labor Hours

The total hours worked by employees that can be directly associated with the production of goods or services.

Single Plantwide Overhead Rate

A cost allocation method that applies the same overhead rate to all products, regardless of the department where they were produced or the amount of overhead they actually incurred.