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mart [117]
2 years ago
12

The following data have been recorded for the production of Product A-11 in the current period. Direct materials cost was $2,079

. A total of 36 direct labor-hours and 179 machine-hours were worked to make the product. The direct labor wage rate is $18.00 per labor-hour. The company allocates manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $19.00 per machine-hour. The total cost for Product A-11 for the current period would be:
Business
1 answer:
noname [10]2 years ago
5 0
It would be probably estimated around 4,843
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Answer:

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Explanation:

Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

Assuming the best surgeon in town is considered to be the best at cleaning swimming pools, then from an economic perspective and reasoning, this person should specialize in being a surgeon because its opportunity cost is lower.

This ultimately implies that, the benefits, profits or value associated with cleaning swimming pools i(alternative forgone) is lower compared to what is obtainable from being a surgeon.

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3 years ago
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