Armati, Inc -Refer to the Figure

question 113

Multiple Choice

Armati, Inc., is looking for feedback on companyperformance. The company compares the budget for the year with the actual costs. Data have been collected below:
Armati, Inc., had the following budgeted data:
$\begin{array}{lr}\text { Unit sales } & 26,000 \\\text { Unit production } & 26,000 \\& \\\text { Budgeted fixed overhead: } & \$ 800 \\\text { Supervision } & 2,000 \\\text { Depreciation } & 100 \\\text { Rent } & 1800\end{array}$

$\begin{array}{llr} \text {Budgeted variable costs per unit: } &\\ \text { Direct materials} &\$0.15\\ \text { Direct labour } &0.20\\ \text { Supplies } &0.02\\ \text { Indirect labour } &0.05\\\text{Power}&0.02\end{array}$
$\begin{array}{llr} \text { Actual unit sales} &24,000\\ \text {Actual unit production } &28,000\\\\ \text { Actual fixed overhead:} &\\ \text { Supervision } &\$850\\ \text { Depreciation } &2,000\\ \text { Rent} &100\\\end{array}$

$\begin{array}{llr} \text { Actual variable costs: } &\\ \text {Direct materials } &\$3,500\\ \text { Direct labour} &4,900\\ \text {Supplies } &530\\ \text { Indirect labour} &1,250\\ \text {Power } &470\\\end{array}$


-Refer to the figure.What was the actual cost for direct materials?

• A)$3,500
• B)$3,600
• C)$3,900
• D)$4,500

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Definitions:

Experiential Intelligence

Intelligence that involves the ability to use past personal experiences to solve new problems.

Contextual Knowledge

Understanding that is informed by and applied within the context in which it occurs, reflecting the situation, environment, or specific circumstances.

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Knowledge that is acquired through experience and practice, often skill-based or technique-oriented, enabling problem-solving in real-world situations.

Postconventional Morality

A stage of moral development where an individual's moral reasoning is based on ethical principles and universal human rights, rather than on societal rules or expectations.