Figure 28-4 -Refer to Figure 28-4. If 6,000 Workers Are Unemployed, Then

question 567

Multiple Choice

Figure 28-4
-Refer to Figure 28-4. If 6,000 workers are unemployed, then the minimum wage must be

• A) $1.
• B) $4.
• C) $6.
• D) $7.

---

Definitions:

Variable Overhead Rate Variance

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

Materials Price Variance

The difference between the actual cost of raw materials and the standard or expected cost, multiplied by the quantity of materials purchased.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or budgeted) variable overhead based on a standard rate.

Labor Efficiency Variance

measures the difference between the actual labor hours used and the standard labor hours expected for the production achieved, indicating labor efficiency.