Use the Figure Below to Answer the Following Questions

question 93

Multiple Choice

Use the figure below to answer the following questions. Figure 3.4.2
-At a price of $4 a unit in Figure 3.4.2,

• A)the equilibrium quantity is 400 units.
• B)there is a surplus of 200 units.
• C)the quantity supplied is 400 units.
• D)there is a shortage of 200 units.
• E)the quantity demanded is 200 units.

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Definitions:

Allocation

The process of distributing resources or costs among various departments, products, or activities based on specific criteria or formulas.

Journal Entry

A record in accounting that represents a transaction, showing the accounts affected and the amounts debited and credited.

Overapplied Balance

A situation in cost accounting where the amount of overhead applied to products or services exceeds the actual overhead costs incurred.

Manufacturing Overhead Account

An account used to record all indirect costs associated with the production process, including utilities, rent, and salaries for managers.