-The Above Figure Shows a Graph of the Market for Pizzas

question 111

Multiple Choice

-The above figure shows a graph of the market for pizzas in a large town.If the price falls from $10 to $7 per pizza,the quantity of pizzas demanded will

• A) increase by 20.
• B) decrease by 30.
• C) increase by 30.
• D) decrease by 10.

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to produced goods, based on estimated costs and activity levels.

Direct Labor-Hours

A measure of the actual labor time spent on producing goods, often used to allocate manufacturing overhead to products.

Plantwide Predetermined Rate

A single overhead absorption rate calculated for an entire manufacturing plant, used to allocate manufacturing overhead to individual products.

Machine-Hours

A measure of production time, indicated by the number of hours machines are operating in the manufacturing process.