What Are the Equivalent Units for Direct Labor and Overhead

question 33

Multiple Choice

What are the equivalent units for direct labor and overhead?

• A) 140,000.
• B) 80,000.
• C) 160,000.
• D) 130,000.

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Definitions:

Expected Rate of Profit

Expected profits divided by money invested.

Disposable Income

The sum of funds households can spend and save after deducting income taxes.

APS

Average Propensity to Save, which measures the proportion of income that is saved rather than spent.

Capacity Utilization Rate

The percentage of a firm's total potential production capacity that is actually being utilized in the production of goods or services.