Use the Figure Below to Answer the Following Question(s)

question 360

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 3-3

-In Figure 3-3,if the initial demand for margarine were D₁,the impact of an increase in the price of margarine from $0.35 to $0.40 per pound on consumer purchases would be illustrated as

• A)a shift in the demand curve to D₂.
• B)a shift in the demand curve to D₃.
• C)a movement upward to the left along the original demand curve D₁.
• D)none of the above.

---

Definitions:

Overapplied Overhead

A circumstance where manufacturing overhead costs assigned exceed the real costs incurred for overhead.

Underapplied Overhead

The situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred, leading to underestimation of product costs.

Job-Order Costing

An accounting method used to track the costs associated with producing a specific job or batch of products.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs related to utilities, depreciation, and salaries for management.