An Index of Clothing Prices for 2008 Based on 1998

question 25

Multiple Choice

An index of clothing prices for 2008 based on 1998 is to be constructed. The clothing items considered are shoes and dresses. The information for prices and quantities for both years is given below. Use 1998 as the base period and 100 as the base value. Determine the Aggregate price index for 2008.

• A) 111.8
• B) 112.9
• C) 113.3
• D) 112.5
• E) 113.0

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Definitions:

Overhead Volume Variance

The difference between the budgeted and actual volume of overhead costs.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing of products or in providing services.

Budgeted Overhead

Budgeted overhead is the estimated total cost of all overhead expenses planned for a specific period in the future.

Controllable Overhead Variance

The difference between the actual overhead costs incurred that are directly manageable by a manager and the budgeted or standard overhead costs.