Use the Following to Answer Questions

question 323

Multiple Choice

Use the following to answer questions:
Figure: Supply and Demand 2
-(Figure: Supply and Demand 2) If the government sets the price at $8 in this figure, the total value of the wasted time is:

• A) $36.
• B) $48.
• C) $64.
• D) $8.

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Definitions:

Standard Cost Card

A document that lists the expected costs of materials, labor, and overhead associated with producing a particular product or performing a service.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity allowed, multiplied by the standard cost per unit.

Direct Labor Rate

The rate paid for the labor time per unit of work or hour worked by an employee directly involved in production.

Cost Drivers

Factors that cause the cost of an activity or process to change, affecting the overall cost of production.