Shipp Inc Manufactures a Product Requiring Two Pounds of Direct Material

question 24

Multiple Choice

Shipp Inc. manufactures a product requiring two pounds of direct material. During 2016 Shipp purchases 24000 pounds of material for $99200 when the standard price per pound is $4. During 2016 Shipp uses 22000 pounds to make 12000 products. The standard direct material cost per unit of finished product is

• A) $8.27.
• B) $9.01.
• C) $8.00.
• D) $8.53.

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Definitions:

Utilitarian Rule

A principle that dictates choosing actions that maximize happiness or benefit to the greatest number of people.

Greatest Good

A principle suggesting that actions should be evaluated based on their ability to produce the maximum amount of happiness or benefit for the greatest number of people.

Trap Of Rationalization

The justification of questionable behavior with seemingly reasonable excuses, obscuring true motives or flaws.

Self-Deception

A psychological process where an individual convinces themselves of a false reality to avoid facing uncomfortable truths.