The Standard Costs and Actual Costs for Direct Materials for the Manufacture

question 169

Multiple Choice

The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows:

• A)$1,875 unfavorable.
• B)$1,950 favorable.
• C)$1,875 favorable.
• D)$1,950 unfavorable.

---

Definitions:

Consumer Tastes

Preferences and inclinations of consumers in terms of what they like, desire, or find appealing.

Yield Management Pricing

A pricing strategy that involves adjusting prices based on demand to maximize revenue.

Demand-Backward Pricing

A pricing strategy where the starting point is the consumer's desired price, and costs are worked backward to determine if a product can be profitably produced.

Target Pricing

A pricing method in which the selling price of a product is calculated to produce a particular return on investment for a specific volume of production.