-Calculate the Direct Materials Price Variance

question 100

Multiple Choice

-Calculate the direct materials price variance.

• A) $1,795.50 favorable
• B) $378.00 favorable
• C) $4,512.50 unfavorable
• D) $378.00 unfavorable

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating the economic benefit to consumers.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive.

Underproduction

The condition where the output is less than what is economically or socially optimal.