Exhibit 20-7 ​

question 166

Multiple Choice

Exhibit 20-7
​

-Refer to Exhibit 20-7. For graph (3) , if the price of Y is $200, the price of X is

• A)$50.
• B)$40.
• C)$30.
• D)$25.
• E)$15.

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Definitions:

Total Labor Variance

The difference between the actual labor costs and the standard or budgeted labor costs for a production process.

U-bolts

Metal fasteners in the shape of the letter U, used to secure pipes or other round objects to surfaces.

Standard Costs

Costs that are predetermined on a per-unit basis. Standard costs are used as a benchmark for evaluating performance. These costs are often used in or are the output from the budgeting process.

Efficiency Losses

Reductions in economic well-being, reflected by the inability of a market to allocate resources optimally.