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

question 201

Multiple Choice

A company developed the following per-unit standards for its product: 2 gallons of direct materials at $8 per gallon. Last month 3000 gallons of direct materials were purchased for $22800. The direct materials price variance for last month was

• A) $22800 favorable.
• B) $600 favorable.
• C) $1200 favorable.
• D) $1200 unfavorable.

---

Definitions:

Reactive Crisis

A crisis that emerges in response to an unanticipated event, causing stress or disruption in one's life or organization.

Adventitious Crisis

A crisis resulting from unexpected external stressors or traumatic events, not predicted as part of normal life.

Triage Nurse

A specialized nurse responsible for assessing patients on arrival to determine their need for urgent care based on the severity of their condition.

Anxious

Experiencing worry, unease, or nervousness, typically about an imminent event or something with an uncertain outcome.