You are getting ready to open the shoe hut, but you need to need to determine whether you have the absolute or comparative advantage in the production of specific items. this will you determine which product is the best for specialization.
your production possibilities are as follows:
• you have the resources to produce up to 15 running shoe inserts.
• you have the resources to produce up to 10 hiking boot inserts.
• for every 2 hiking boot inserts produced, you give up the production of 3 running shoe inserts.

Speedy auto repairs uses a job-order costing system. the company’s direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics’ hourly wages. speedy’s overhead costs include various items, such as the shop manager’s salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. the company applies all of its overhead costs to jobs based on direct labor-hours. at the beginning of the year, it made the following estimates: direct labor-hours required to support estimated output 20,000 fixed overhead cost $ 350,000 variable overhead cost per direct labor-hour $ 1.00 required: 1. compute the predetermined overhead rate. 2. during the year, mr. wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. the following information was available with respect to his job: direct materials $ 590 direct labor cost $ 109 direct labor-hours used 6