FIGURE 3- 6 -Refer to Figure 3- 6. If the Initial Demand and Initial

question 90

Multiple Choice

FIGURE 3- 6
-Refer to Figure 3- 6. If the initial demand and supply curves are D1 and S1, equilibrium price and quantity are represented by point

• A) A.
• B) B.
• C) C.
• D) D.
• E) - not shown in the figure

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Definitions:

Direct Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the standard expected quantity.

Direct Labor Time Variance

The difference between the actual time taken to manufacture a product and the standard time expected, multiplied by the wage rate.

Direct Labor Time Variance

The difference between the estimated time for production and the actual time taken, multiplied by the wage rate.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the standard cost, indicating efficiency in labor usage.