Solve the Problem Suppose You See a House Valued at $190,000 in Spokane

question 281

Multiple Choice

Solve the problem.
-The table below shows a housing index that can be used to compare housing prices in different cities. $$\begin{array} { l | c } \text { CITY } & \text { INDEX } \\\hline \text { Juneau, AK } & 100 \\\text { Palo Alto, CA } & 365 \\\text { Denver, CO } & 87 \\\text { Spokane, WA } & 78 \\\text { Boston, MA } & 182 \\\text { Manhattan, NY } & 495\end{array}$$ Suppose you see a house valued at $190,000 in Spokane. Find the price of a comparable house in
Manhattan.

• A)$1,326,346
• B)$1,205,769
• C)$29,939
• D)$1,085,192

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Definitions:

Labor Rate Variance

The difference between the actual labor rate paid and the standard labor rate expected, multiplied by the actual hours worked.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, reflecting efficiency in material use.

Variable Overhead Efficiency Variance

The difference between the actual hours taken to produce something and the standard hours expected, multiplied by the variable overhead rate.

Materials Price Variance

The difference between the actual cost of materials and the expected cost multiplied by the quantity of materials used.