An Automobile Parts Company Has a Standard Material Price of $2

question 122

Multiple Choice

An automobile parts company has a standard material price of $2 per pound.In October the company produced 4,500 units using 6,000 pounds of material.The company experienced a favorable materials quantity variance of $1,200.How much is the standard quantity of materials per unit?

• A)1.20 pounds
• B)1 pound
• C)2.4 pounds
• D)1.47 pounds

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Definitions:

FTC Guidelines

Rules or regulations issued by the Federal Trade Commission that govern the conduct of business and advertising practices in the United States to protect consumers.

Promotional Communication

Promotional communication involves messages that are intended to inform, persuade, or remind audiences about products, services, or ideas through various media channels.

Courtesy Title

is a title bestowed out of respect or honor, often without the formal rights associated with that position or status.

Confidential Matters

relates to information that is meant to be kept secret or private, often due to its sensitive nature.