Table 14-5 The Table Represents a Demand Curve Faced by a Firm

question 8

Multiple Choice

Table 14-5
The table represents a demand curve faced by a firm in a competitive market.
-Refer to Table 14-5. For this firm, the average revenue when 14 units are produced and sold is

• A) $9.
• B) $11.
• C) $13.
• D) $15.

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Definitions:

Rate Variance

The difference between the standard cost and the actual cost based on the rate of an input.

Direct Labor Time Variance

The difference between the actual time taken to produce a good or service and the expected time, multiplied by the standard labor rate.

Direct Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the standard expected quantity.

Direct Labor Time Variance

The difference between the actual time taken to manufacture a product and the standard time expected, multiplied by the wage rate.