If the Current Price of a Good Is $10,market Demand

question 32

Multiple Choice

If the current price of a good is $10,market demand is ,and market supply is ,then

• A)more of the good is being produced than people want to buy.
• B)a lower price will increase the shortage.
• C)at the current price there is excess demand,or a shortage,of 150 units.
• D)Both b and c
• E)All of the above

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Definitions:

Predetermined Overhead Rate

A calculated rate used to allocate manufacturing overhead costs to products or job orders, based on a specific activity basis.

Variable Overhead

Costs that fluctuate with the level of production output, such as utilities or materials, unlike fixed overhead costs.

Total Overhead Variance

The difference between the actual overhead costs incurred and the overhead costs that were applied or allocated based on standard costing procedures.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the quantity that should have been used, valued at the standard cost.