During October, 14,000 Direct Labour Hours Were Worked at a Standard

question 40

Multiple Choice

During October, 14,000 direct labour hours were worked at a standard cost of £40 per hour. If the labour rate variance for October was £70,000 favorable, the actual cost per labour hour must be

• A) £35
• B) £40
• C) £45
• D) none of the above

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Definitions:

Aggregate Supply Curve

A graph that shows the relationship between the overall price level in the economy and the total output (GDP) that firms produce and sell, at all possible price levels.

Trade Restrictions

Measures imposed by governments to regulate international trade, including tariffs, quotas, and embargoes.

Natural Resources

The inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits.

Aggregate Demand

The total demand for all finished goods and services produced in an economy at a given time and price level.