-Refer to the Above Graph to Answer This Question

question 130

Multiple Choice

-Refer to the above graph to answer this question.What will be the result if the producer prices this product at $7,000.

• A)She will sell 80 units.
• B)She will sell 140 units.
• C)There will be a surplus of 80 units.
• D)There will be a shortage of 80 units.
• E)It would be underpriced.

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Definitions:

Normal Capacity Hours

A calculation of the maximum amount of work that an organization can complete in a given period under normal conditions.

Standard Hours Allowed

The estimated amount of time that should be required to complete a specific amount of work under normal conditions.

Overhead Volume Variance

The difference between the budgeted and actual overhead costs attributable to a change in production volume.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process or production of goods.