Refer to the Following Figure to Answer the Next Questions

question 111

Multiple Choice

Refer to the following figure to answer the next questions.

-According to the figure, which points) would see tax revenues decrease if the tax rate decreased?

• A) only A
• B) only B
• C) A and C
• D) A and B
• E) B and C

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Definitions:

Variable Overhead

Those overhead costs that vary in total directly and proportionately with changes in production or activity level.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on a standard rate.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected (budgeted) cost of these materials.

Standard Direct Labor-Hours

The estimated amount of labor time required to produce one unit of output, based on established standards.