Advantages of using standard costs include all the following except that Multiple Choice standard costing allows companies to create flexible budgets. managers can evaluate the efficiency of production workers. differences in the flexible budget can be broken down into price and quantity components. the price sensitivity of consumers can be analyzed.

After the price floor is instituted, the chairman of productions office buys up any barrels of gosum berries that the producers are not able to sell. with the price floor, the producers sell 300 barrels per month to consumers, but the producers, at this high price floor, produce 700 barrels per month. how much producer surplus is created with the price floor? show your calculations.