Answer:
Material Quantity Variance = $18,000 Favorable
Explanation:
Material Quantity Variance = (Standard Quantity - Actual Quantity) Standard Rate
Provided information
Here, Standard Rate = $3.00 per pound of raw material
Standard Quantity for Actual Output of 60,000 batches = 60,000 1.4 pound = 84,000
Actual Quantity = 78,000
Material Quantity Variance = (84,000 - 78,000) $3.00
= 6,000 $3.00 = $18,000
Since standard quantity is more than actual it is a favorable variance.
Answer:
$100
Explanation:
A binding price ceiling will artificially set a maximum price for a product, but that doesn't mean that the supplier will be willing to supply goods at that price. Binding price ceilings result in shortages, since the quantity demanded increases, while the quantity demanded decreases. This results in a loss of economic benefit known as deadweight loss.
As seen in the attached graph, the deadweight loss is equal to the area beneath the demand curve and above the supply curve, to the left of the equilibrium price.
