Parallel Enterprises Has Collected the Following Data on One of Its

question 164

Multiple Choice

Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials price variance is: $$\begin{array} { l l } \text { Direct materials standard } ( 7 \mathrm {~kg} @ \$ 2 / \mathrm { kg } ) & \$ 014 \text { per finished unit } \\\text { Actual cost of materials purchased } & \$ 322,500 \\\text { Actual direct materials purchared and used } & 150,000 \text { lbs. }\end{array}$$

• A) $27,500 unfavorable.
• B) $50,000 unfavorable.
• C) $50,000 favorable.
• D) $22,500 unfavorable.
• E) $22,500 favorable.

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Definitions:

Mathematical Abilities

The cognitive capacities related to understanding, manipulating, and solving mathematical concepts and problems.

Socially Influenced

Being affected or altered by the social context, including behaviors, opinions, or decisions that are impacted by others or societal norms.

Predictive Validity

The degree to which a score from a test or scale forecasts upcoming performance in a connected task or result.

Culturally Biased

Culturally biased refers to the tendency to interpret or judge phenomena through the lens of one's own cultural background, potentially leading to inaccuracies or unfairness.