Use This Information to Answer the Questions That Follow

question 145

Multiple Choice

Use this information to answer the questions that follow.
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The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows:
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-The total factory overhead cost variance is

• A) $2,000 favorable
• B) $5,000 unfavorable
• C) $2,500 unfavorable
• D) $5,000 favorable

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount of that good consumers are willing to buy.

Support Price

A price level set by governments in order to maintain the market price of a good or service at a particular minimum level to protect producers.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service versus what they actually pay, measuring the benefit to consumers from participation in the market.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market equilibrium.