A Tariff Results in a Higher

question 12

Multiple Choice

A tariff results in a higher:
I. consumer surplus.
II. producer surplus.
III. government revenue.

• A) I and II only
• B) II and III only
• C) I and III only
• D) I, II, and III

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Definitions:

Rate Variance

The difference between the actual rate paid for goods or services and the expected (or standard) rate, most often related to labor or materials.

Direct Labor-Hours

Sum of working hours of staff directly participating in the production process of an item.

Labor Rate Variance

This is the difference between the actual cost of labor and the budgeted or standard cost of labor used in manufacturing.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, used for allocating labor costs to products.