In Figure 30

question 18

Multiple Choice

In Figure 30.2,a minimum wage of $12 will result in

• A)A shortage of 32 workers.
• B)A shortage of 44 workers.
• C)A surplus of 20 workers.
• D)No shortage or surplus of workers.

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Definitions:

Direct Labor Costs

Expenses associated with the wages and benefits of employees who are directly involved in the production of goods or services.

Budgeted Manufacturing Overhead

Budgeted manufacturing overhead is the estimated amount of indirect costs that are expected to be incurred in the manufacturing process during a specified period.

Direct Labor-hour

A measure of the total amount of time worked by employees directly involved in manufacturing a product or providing a service.

Budgeted Manufacturing Overhead

The estimated overhead costs a company anticipates for manufacturing activities within a specified budget period, used for planning and control purposes.