Table 13-19 -Refer to Table 13-19

question 123

Multiple Choice

Table 13-19
$\begin{array}{|c|c|c|}\hline \text { Year } & \begin{array}{c}\text { Nominal Average Hourly } \\\text { Earnings }\end{array} & \begin{array}{c}\text { CPI } \\(\mathbf{1 9 8 2 - 1 9 8 4}=\mathbf{1 0 0}) \end{array} \\\hline 2016 & \$ 10 & 100 \\\hline 2017 & 10 & 105 \\\hline 2018 & 12 & 110 \\\hline\end{array}$
-Refer to Table 13-19.Looking at the table above,what is the rate of growth of the average price level from 2017 to 2018?

• A) 1%
• B) 2%
• C) 3.5%
• D) 4.76%
• E) 5.25%

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Definitions:

Actual Cost

The actual expenses incurred in producing a product or delivering a service, including all direct labor, materials, and overhead costs.

Materials Price Variance

The difference between the actual cost of materials purchased and the standard cost of those materials.

Materials Usage Variance

The difference between the standard quantity of materials expected to be used in production and the actual quantity used, valued at the standard cost for the materials.

Standard Cost

A predetermined cost of manufacturing a single unit or a number of product units during a specific period under current or anticipated conditions.