Use the Following to Answer Question 70

question 190

Multiple Choice

Use the following to answer question 70:
-(Table: The Market for Pop) Use Table: The Market for Pop.If the government imposes a price floor of $1 per can of pop,there will be:

• A) a shortage of two cans.
• B) a shortage of three cans.
• C) a surplus of three cans.
• D) equilibrium in the market for soda.

---

Definitions:

Direct Materials Cost

The cost of raw materials that can be directly traced to the production of goods.

Cost of Goods Manufactured

The total cost of producing goods during a specific period, including raw materials, labor, and overhead expenses.

Adjusted Cost of Goods Sold

The cost of goods sold that has been adjusted for changes in inventory levels or valuation methods.

Overapplied Manufacturing Overhead

A situation where the allocated amount of manufacturing overhead costs exceeds the actual overhead costs incurred.