Reference: 11-03
the Albright Company Uses Standard Costing and Has

question 131

Multiple Choice

Reference: 11-03
The Albright Company uses standard costing and has established the following standards for its single product: $$\begin{array} { | l | l | } \hline \text { Direct materials } & 2 \text { litres at } \$ 3 \text { per litre } \\\hline \text { Direct labour } & 0.5 \text { hours at } \$ 8 \text { per hour } \\\hline \text { Variable manuf. overhead } & 0.5 \text { hours at } \$ 2 \text { per hour } \\\hline \begin{array} { l } \text { During November, the company made } 4,000 \text { units } \\\text { and incurred the following costs: }\end{array} & \\\hline \text { Direct materials purchased } & 8,100 \text { litres at } \$ 3.10 \\\hline & \text { per litre } \\\hline \text { Direct materials used } & 7,600 \text { litres } \\\hline \text { Direct labour used } & 2,200 \text { hours at } \$ 8.25 \text { per hour } \\\hline \text { Actual variable manuf. overhead } & \$ 4,175 \\\hline\end{array}$$ The company applies variable manufacturing overhead to products on the basis of direct labour hours.
-The labour rate variance for November was?

• A)$2,150 U.
• B)$550 U.
• C)$1,050 U.
• D)$2,150 F.

Understand the concept of cross-price elasticity of demand and its application in determining the relationship between two goods (substitutes or complements).

Grasp the concept of income elasticity of demand and its application in classifying goods as normal or inferior.

Apply knowledge of elasticity to predict changes in demand or consumption based on changes in the price of related goods or changes in income.

Recognize the economic implications of different elasticity measures (price, income, and cross-price) on consumer behavior and business strategy.

---

Definitions:

Adolescence

A period marked by the transition in both body and mind, usually extending from puberty until reaching the age of legal majority.

Intimacy

The sense of close personal connection and mutual vulnerability shared between individuals, often in the context of a close relationship.

Levinson

Refers to the theories of psychologist Daniel Levinson, who proposed a series of stages of adult development, including the concept of a mid-life crisis.

Settling Down

The act of beginning to live a stable and orderly life, commonly associated with establishing a long-term residence, career, or entering into long-term relationships.