$\text { Figure } 3-10$ -In the Supply and Demand for Socks Schedules in Figure

question 45

Multiple Choice

$\text { Figure } 3-10$$$\begin{array} { | c c c | } \hline \begin{array} { c } \text { Price } \\\text { Per Pair }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Demanded }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Supplied }\end{array} \\\hline \$ 2 & 18 & 3 \\\$ 4 & 14 & 4 \\\$ 6 & 10 & 5 \\\$ 8 & 6 & 6 \\\$ 10 & 2 & 8 \\\hline\end{array}$$
-In the supply and demand for socks schedules in Figure 3-10,a price of $4 per pair results in

• A) equilibrium
• B) excess supply of 10 pairs
• C) excess demand of 5 pairs
• D) excess demand of 13 pairs
• E) excess demand of 10 pairs

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Definitions:

Activity-Based Costing

An accounting method that identifies and assigns costs to specific activities, thereby more accurately reflecting the costs of products or services.

Overhead Rate

The total of indirect costs of production compared to a base activity measure, like labor hours, used to assign costs to products.

Manufacturing Overhead

These are indirect factory-related costs that are incurred when producing a product, such as utility costs, depreciation, and salaries of supervisors.

Direct Labor-Hours

Direct labor-hours refer to the total hours worked by employees directly involved in the production process.