Exhibit 7-3 -Refer to Exhibit 7-3. Net Exports Is Equal to

question 40

Multiple Choice

Exhibit 7-3

-Refer to Exhibit 7-3. Net exports is equal to

• A)$200.
• B)-$200.
• C)$600.
• D)-$1,400.
• E)$1,400

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Definitions:

Materials Price Variance

The variance between the standard cost and the actual expense of materials, calculated by multiplying the amount bought.

Direct Materials

Raw materials that are directly traceable to the production of a specific product, representing a significant portion of the costs of goods sold.

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the expected costs based on the predetermined overhead rate.

Direct Materials

Raw materials that are directly traceable and allocable to the production of specific goods or services.