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In the Market for Wheat, If the Price of Ethanol

question 97

Multiple Choice

In the market for wheat, if the price of ethanol (which is made from corn, a substitute in production) increased dramatically, the _____ wheat would _____.


Definitions:

Actual Direct Labor Cost

The actual amount spent on wages for workers who are directly involved in producing goods or providing services.

Variable Overhead Efficiency Variance

The difference between the actual and the standard (or expected) variable overhead costs based on the efficient use of the variable inputs.

Variable Overhead

Costs of indirect production materials or services that fluctuate with the level of production activity, such as utilities for a factory.

Direct Labor-hours

The amount of labor time spent by workers directly involved in the manufacturing process, restated as "The quantity of labor time directly utilized in producing goods."

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