The Figure Given Below Depicts the Negatively Sloped Demand and Positively

question 79

Multiple Choice

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country. Figure 20.2 According to Figure 20.2, if the world price of wheat is $25 and a tariff of $25 is imposed by the domestic government, the total tariff revenue collected by the government is:

• A)$2, 000.
• B)$0.
• C)$200.
• D)$100.
• E)$4, 000

---

Definitions:

Standard Costing System

A cost accounting system that uses standard costs for product costs and measures variances to actual costs for performance evaluation.

Overhead Volume Variance

The difference between the expected (budgeted) overhead costs and the actual overhead allocated based on actual volume of production.

Materials Price Variance

The difference between the actual cost of materials used in production and the budgeted cost, based on standard pricing.

Total Materials Variance

The difference between the actual cost of materials used in production and the standard cost of those materials.