Aztec Bromac Budgeted the Following Cost Standards for the Current

question 155

Multiple Choice

Aztec Bromac budgeted the following cost standards for the current year: Direct materials = 2.8 kilos per unit @ $3.00 per kilo
Direct labour = 1.5 hours per unit @ $6 per hour
Actual production and costs were as follows:
Units produced = 3,600
Direct materials used = 9,000 kg.
Direct materials purchased = 10,000 kg. @ a cost of $29,000
Direct labour incurred = 4,000 hours at a cost of $26,000
The material efficiency variance was:

• A) $240 F
• B) $240 U
• C) $3,240 F
• D) $3,000 U

Describe the relationship between disinflation, unemployment rate, and output as explained by the Phillips curve.

Calculate and interpret the sacrifice ratio in scenarios of disinflation.

Explain the impact of central bank policies on unemployment and inflation, including the role of expectations.

Describe the effects of supply shocks on the economy and the response of the central bank.