Use the Table Below to Choose the Correct Answer

question 139

Multiple Choice

Use the table below to choose the correct answer. The table is a schedule of the supply and demand for coffee (both given in thousands of pounds per month) .
The equilibrium market price of coffee would be

• A) $6 per pound.
• B) $8 per pound.
• C) $10 per pound.
• D) $12 per pound.

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Definitions:

Variable Overhead Rate

A measure used to estimate the variable costs that a business incurs during the production of a good or service.

Direct Labor Hours

The amount of time spent by workers directly involved in manufacturing a product.

Direct Materials

Raw materials that can be directly linked to the production of specific goods or services in a manufacturing process.

Fluid Ounces

A unit of volume used primarily in the United States to measure liquids, equivalent to approximately 29.57 ml.