-Refer to Figure 17

question 123

Multiple Choice

-Refer to Figure 17.2.If the equilibrium wage $12 and a new minimum wage is set at $15,then ________ hours of labor will be employed.

• A)36,000
• B)25,000
• C)30,000
• D)none of these

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate reflection of costs.

Direct Labor-Hours

Direct labor-hours are the total hours worked by employees directly involved in the manufacturing process.

Direct Materials Cost

The cost of raw materials used to produce a product, which are directly attributable to the product.

Direct Labor-Hours

The combined working hours of employees directly contributing to the manufacturing cycle.