Refer to the Information Provided in Figure 3

question 116

Multiple Choice

Refer to the information provided in Figure 3.7 below to answer the following question(s) . Figure 3.7
-Refer to Figure 3.7. Assume the market is initially at Point B and that pizza is a normal good. A decrease in income would cause the market to move from Point B on demand curve D₂ to

• A) demand curve D₁.
• B) demand curve D₃.
• C) Point A on demand curve D₂.
• D) Point C on demand curve D₂.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost that was expected or budgeted.

Materials Quantity Variance

The difference between the actual amount of materials used in production and the standard amount expected, measured in terms of cost.

Labor Price Variance

The difference between the actual cost of direct labor and the standard or expected cost.

Labor Quantity Variance

The difference between the actual labor hours used and the standard hours planned, multiplied by the standard hourly labor rate.