Use the Following to Answer Questions

question 148

Multiple Choice

Use the following to answer questions
Figure: Determining Surplus
-(Figure: Determining Surplus) In the graph,which shape represents producer surplus?

• A) the triangle hik
• B) the line ij
• C) the line hi
• D) the triangle jik

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the standard or expected cost, which can occur due to wage rate changes or differences in worker efficiency.

Labor Efficiency Variance

The difference between the actual labor hours taken to produce something and the standard labor hours expected, multiplied by the labor rate.

Direct Labor

The wages and salaries for workers who are directly involved in the production of goods.

Raw Materials

The basic materials and substances used in the initial stages of production to manufacture goods.