Table 4-1 -Refer to Table 4-1.The Table Above Lists the Highest Prices

question 161

Multiple Choice

Table 4-1

-Refer to Table 4-1.The table above lists the highest prices three consumers,Curly,Moe,and Larry,are willing to pay for a bottle of champagne.If the price of one of the bottles is $24 dollars

• A)Curly will buy two bottles,Moe will buy one bottle and Larry will buy no bottles.
• B)Curly will receive $26 of consumer surplus from buying one bottle.
• C)Curly and Moe receive a total of $80 of consumer surplus from buying one bottle each.Larry will buy no bottles.
• D)Larry will receive $15 of consumer surplus since he will buy no bottles.

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Definitions:

Labor Rate Variance

The difference between the actual labor costs incurred and the expected or standard labor costs for the production volume achieved.

Direct Labor

Labor costs directly associated with the production of goods or services, involving work that can be directly traced back to specific products.

Direct Materials Price Variance

A measurement of the difference between the actual cost of direct materials and the standard cost expected to be paid, expressed in monetary terms.

Direct Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the standard amount expected, valued at the standard cost.