Figure 8-4 the Vertical Distance Between Points a and B Represents a Represents

question 182

Multiple Choice

Figure 8-4
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-4.The amount of deadweight loss as a result of the tax is

• A)$35.00.
• B)$45.25.
• C)$52.50.
• D)$105.00.

---

Definitions:

Materials Price Variance

The difference between the actual amount paid for materials and the expected (or standard) cost of those materials, multiplied by the quantity of materials purchased.

Direct Material Standards

Standard costs set for the quantity and price of materials required for a manufacturing process.

Purchases Variance

A measurement of the difference between the actual cost of materials and the expected, or standard, cost.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the standard costs for the actual production volume.