Cabot Company Collected the Following Data Regarding Production of One

question 163

Multiple Choice

Cabot Company collected the following data regarding production of one of its products.Compute the direct materials price variance. $$\begin{array} { l l } \text { Direct materials stardard (6lbs. @ } \$ 2 / lb ) & \$ 12 \mathrm { per } \text { firished urit } \\\text { Actual direct materials used } & 243,000 \mathrm { lbs } \\\text { Actual firished urits produced } & 40,000 \mathrm { units } \\\text { Actual cost of direct materials used } & \$ 483,570\end{array}$$

• A)$2,430 unfavorable.
• B)$3,570 unfavorable.
• C)$2,430 favorable.
• D)$6,000 unfavorable.
• E)$3,570 favorable.

---

Definitions:

Intentionally Deceives

Deliberately misleading or causing someone to believe something that is not true, often for personal gain or advantage.

Lying By Commission

The act of intentionally providing false information or statements.

Intuitive Style

A way of decision-making or problem-solving based on instinctual feeling rather than analytical reasoning.

Thinking Style

The characteristic manner by which an individual processes information, makes decisions, and solves problems, often influenced by cognitive and personality factors.