Refer to the Following Graph to Answer the Following Questions

question 139

Multiple Choice

Refer to the following graph to answer the following questions:
-Assuming the figure represents the market for loanable funds,it would be true that

• A) the vertical axis represents the amount of savings,and the horizontal axis represents the amount of borrowing.
• B) the vertical axis represents the interest rate,and the distance between points C and D represents the surplus of loanable funds at interest rate A.
• C) the horizontal axis represents the interest rate,and the distance between points C and D represents the shortage of loanable funds.
• D) the vertical axis represents the interest rate,and the distance between points C and D represents the shortage of loanable funds at interest rate A.
• E) line 1 represents the interest rate,and line 2 represents the quantity of savings.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead and the standard cost of variable overhead allocated for the actual production.

Supplies Cost

The cost associated with materials and items used in the operation or maintenance of a business or facility.

Machine-Hours

A measure of the amount of time a machine is operated, used for allocating machine operation costs to products or units produced.

Direct Labor Variances

The differences between the budgeted and actual costs of direct labor, analyzed to understand deviations in manufacturing expenses.