The Table Below Shows the Labour Demand and Labour Supply

question 112

Multiple Choice

The table below shows the labour demand and labour supply schedules in a competitive labour market.
TABLE 14-1
-Refer to Table 14-1.If the wage rate is $15 per hour,how many hours per month are supplied to this market but are not actually employed?

• A)0
• B)400
• C)1000
• D)1100
• E)1500

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Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs, contributing towards covering fixed costs and generating profit.

Variable Factory Overhead

Costs that vary with the volume of production and include expenses such as indirect materials and utilities.

Absorption Costing

An accounting method that includes all direct costs and overhead expenses related to the production of a product in its cost base.

Variable Costing Income Statement

A financial statement format that only includes variable costs as product costs, with fixed manufacturing overhead treated as a period expense.