Use the Information Below to Answer the Following Question(s)

question 71

Multiple Choice

Use the information below to answer the following question(s) .
The following data for a pottery company pertain to the production of 2,000 clay pots during July.
Direct Materials (all materials purchased were used) :
Direct Manufacturing Labour:

-What is the direct materials price variance for the clay pots?

• A) $560 unfavourable
• B) $560 favourable
• C) $800 unfavourable
• D) $800 favourable
• E) $1,040 favourable

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Definitions:

Marginal Utility

The extra pleasure or benefit a consumer receives from using an additional unit of a product or service.

Demand Schedule

A table that lists the quantity of a good that consumers are willing and able to purchase at varying price points, at a specific moment in time.

Total Utility

The total satisfaction or benefit that a consumer derives from consuming a certain quantity of goods or services.

Consumer Surplus

Describes the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.