Use the Following to Answer Question

question 253

Multiple Choice

Use the following to answer question:
-(Table: Demand for Solar Water Heaters) Use Table: Demand for Solar Water Heaters.The marginal cost of producing solar water heaters is zero,and only two firms,Rheem and Calefi,produce them.If they agree to collude,what price will the cartel charge and how many water heaters will the cartel sell?

• A)$1,000;50
• B)$1,100;45
• C)$900;55
• D)$800;60

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Definitions:

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit.

Direct Labor Time Variance

The difference between the actual time taken to complete a task and the standard time expected, multiplied by the labor rate.

Factory Overhead Volume Variance

The difference between the budgeted and actual volume of production, affecting the allocation of fixed manufacturing overhead costs to products.

Direct Materials Price Variance

A measure used in cost accounting that calculates the difference between the actual cost of direct materials and the standard cost expected to be incurred.