Baldwin, Inc Uses a Standard Job Cost System and Purchased $\$ 150,000$

question 6

Multiple Choice

Baldwin, Inc uses a standard job cost system and purchased 25,000 kg of material at $6 per kg, and used it all. The standard amount allowed for the output achieved is 22,500 kg, and the standard price is $6.50 per kg. The company also incurred 37,500 direct labour hours for $450,000. The standard hourly price was $11 per hour, and 39,000 hours were allowed at standard. Assuming all variances are immaterial, answer the following questions:
The entry to record the direct material price variance will include a:

• A) Debit to materials inventory for \( \$ 150,000 \)
• B) Debit to account payable for \( \$ 162,500 \)
• C) Cre dit to the price variance for \( \$ 12,500 \)
• D) Debit to the price variance for \( \$ 16,250 \)

---

Definitions:

Defense Mechanism

Psychological strategies employed unconsciously to protect a person from anxiety-arising thoughts or feelings.

Unacceptable Impulses

Thoughts or desires that are often viewed as inappropriate or socially unacceptable, which can cause distress if not managed.

Displacement

In psychology, a defense mechanism where mind substitutes a new aim or object for goals felt in their original form to be dangerous or unacceptable.

Psychosexual Development

Psychosexual development is a Freudian concept describing how personality develops through stages centered on erogenous zones from infancy to adulthood.