English Ltd

question 41

Multiple Choice

English Ltd. analyzed the relationship between total factory overhead and changes in direct labour hours. It found the following: Y = £6,000 + £6X
The Y in the equation is an estimate of

• A) total variable costs.
• B) total direct labour hours.
• C) total factory overhead.
• D) total fixed costs.

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Definitions:

Domestic Surplus

The extra quantity of a good that producers are willing to supply over what is demanded by domestic consumers, often measured when analyzing the impact of international trade.

Tariffs

Taxes on imported goods, implemented by a government to protect domestic industries from foreign competition or to generate revenue.

Textiles

Materials made from fibers, filaments, threads, or yarns, suitable for use in the production of fabrics and other goods.

Price Of Labor

Refers to the wage rate, or the amount of compensation workers receive in exchange for their labor.