Figure 8-3 the Vertical Distance Between Points a and C Represents a Represents

question 176

Multiple Choice

Figure 8-3
The vertical distance between points A and C represents a tax in the market.
-Refer to Figure 8-3.Which of the following equations is valid for the tax revenue that the tax provides to the government?

• A)Tax revenue = (P2 - P1)xQ1
• B)Tax revenue = (P3 - P1)xQ1
• C)Tax revenue = (P3 - P2)xQ1
• D)Tax revenue = (P3 - P1)x(Q2 - Q1)

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost accounting practices.

Direct Labor-Hours

The combined hours worked by staff directly partaking in the manufacturing activities.

Standard Hours Allowed

The amount of work hours allocated for the completion of a specific task, based on standard performance.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected (standard) cost, indicating how material cost fluctuations affect production costs.