Pardee, Inc The Standard Quantity of Direct Materials Allowed for the Month

question 68

Multiple Choice

Pardee, Inc. 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: $$\begin{array} { l c } \text { Efficiency variance } & \$ 4,500 \text { Unfavourable } \\\text { Standard price } & \$ 10 \text { per unit } \\\text { Actual units purchased } & 9,000 \\\text { Inventory decrease } & 1,000 \text { units } \\\text { Budget variance } & \$ 900 \text { Favourable }\end{array}$$ The standard quantity of direct materials allowed for the month was:

• A) 10,450
• B) 9,000
• C) 10,000
• D) 9,550

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Definitions:

Differential Activation

The concept in psychology that suggests different situations or stimuli can activate different parts of the brain or emotions in an individual.

Negative Thinking

A cognitive pattern where an individual consistently interprets situations and outcomes in a pessimistic or detrimental manner, often affecting mental health.

Sad Moods

Emotional states characterized by feelings of sorrow, disappointment, or pessimism, often transient and reactive to specific events.

Depression Relapse

The return of depressive symptoms after a period of improvement or remission, often requiring additional treatment or modification of existing therapy.