Figure 3-8 -Refer to Figure 3-8.The Graph in This Figure Illustrates an This

question 83

Multiple Choice

Figure 3-8

-Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D₁ and S₁ (point A) . If there is an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples, the equilibrium could move to which point?

• A)none of the points shown
• B)B
• C)C

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Definitions:

Total Overhead Variance

The difference between total actual and applied overhead.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process, often used to allocate labor costs to products.

Quantity Variances

The difference between the expected and actual number of units used or produced, which can affect costing and budgeting assessments.

Price Variance

The difference between the actual price paid for a purchase and the standard or expected price, usually applied to direct materials or direct labor costs.