Use the Following to Answer Questions

question 77

Multiple Choice

Use the following to answer questions:
Figure: Monopoly Markup
-(Figure: Monopoly Markup) Refer to the figure. Consumer surplus under competition is represented by:

• A) triangle abc.
• B) triangle cef.
• C) square bcde.
• D) triangle adf.

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Definitions:

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain level of output, multiplied by the standard labor rate.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, often used in manufacturing to measure efficiency and cost management.

Favorable

A term typically used in budgeting and accounting to describe variances or outcomes that are better than expected or budgeted figures.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard variable overhead estimated.