In Command Ltd Completed Operations for the Week and the Accountant

question 141

Multiple Choice

In Command Ltd completed operations for the week and the accountant was preparing to make journal entries necessary to prepare a set of interim financial statements. Unfortunately, he discovered some of the data concerning direct materials had been lost. He was able to find the following: $$\begin{array} { l l } \text { Efficiency variance } & \$ 9,000 \text { Unfavourable } \\\text { Stardard price } & \$ 10 \text { per urit } \\\text { Actual units purchased } & 18,000 \\\text { Inventory decrease } & 1,000 \text { units } \\\text { Budget variance } & \$ 1,800 \text { Favourable }\end{array}$$ The actual direct materials price paid per unit was:

• A) $9.60
• B) $9.40
• C) $10.00
• D) $10.60

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Definitions:

Processing Orders

The activities involved in fulfilling customer requests for goods or services.

Time-Driven

A term related to activity-based costing that assigns costs based on the amount of time required to complete a task.

Resolving Queries

The process of addressing and clarifying doubts or questions that arise in any context, ensuring understanding or resolving issues.

Time-Driven

Pertaining to operations or processes that are initiated, executed, or measured based on time.