A Company Developed the Following Per-Unit Standards for Its Product

question 14

Multiple Choice

A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month 1500 pounds of direct materials were purchased for $5700. The direct materials price variance for last month was

• A) $5700 favorable.
• B) $300 favorable.
• C) $150 favorable.
• D) $300 unfavorable.

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Definitions:

DC Average

The average value of a direct current (DC) signal over a period of time, usually calculated by integrating the signal over that period and dividing by the period's length.

Positive Pulses

Positive pulses are brief increases in electrical voltage or current that move from a baseline towards a higher value in a positive direction.

Voltage

The electrical potential difference between two points, or the force that drives an electric current between those points.

Armature

The rotating part of an electric machine, such as a motor or generator, around which the electromotive force is generated.