The Following Information Summarizes the Standard Cost for Producing One

question 53

Multiple Choice

The following information summarizes the standard cost for producing one metal tennis racket frame at Spaulding Industries. In addition, the variances for one month's production are given. Assume that all inventory accounts have zero balances at the beginning of the month.
$\begin{array}{lcc}&\text { Standard Cost Per }&\text {Standard Monthly }\\&\text { Uunit}&\text { Costs}\\\text { Materials } & \$ 4.00 & \$ 8,400 \\\text { Direct Labor 2 hrs @ \$2.60 } & 5.20 & 10,920\\\text { Factory Overhead: } & & \\\text { Variable } & 1.80 & 3,780 \\\text { Fixed } & \underline{5.00} & \underline{10,500}\\& \underline{\$16.00}& \underline{\$33,600}\end{array}$

$\begin{array}{llrl}\text { Variances: }\\\text { Material price } & \$ 244.75 & \text { unfavorable } \\\text { Material quantity } & \$ 500.00 & \text { unfavorable } \\\text { Labor rate } & \$ 520.00 & \text { favorable } \\\text { Labor efficiency } & \$ 2,080.00 & \text { unfavorable }\end{array}$


-
What was the actual price per unit paid for the direct material during the month, assuming all materials purchased were put into production?

• A) $4.34
• B) $4.22
• C) $4.11
• D) $4.00

---

Definitions:

Factor Structure

The pattern and relationship of underlying factors identified through factor analysis that explains the variability among observed variables.

Psychological Construct

An abstract concept or category used to describe and understand psychological phenomena that are not directly observable, such as intelligence or motivation.

Comparative Research Framework

A methodology that involves comparing two or more groups, entities, or cases, in real-life or experimental settings, to draw conclusions about their similarities or differences.

Psychological Variables

Factors that can be varied or measured in experiments or studies that reflect emotional, cognitive, and behavioral aspects of individuals.