The Porter Company Has a Standard Cost System

question 181

Multiple Choice

The Porter Company has a standard cost system.In July,the company purchased and used 22,500 kilograms of direct material at an actual cost of $53,000,the materials quantity variance was $1,875 unfavourable,and the standard quantity of materials allowed for July production was 21,750 kilograms.What was the materials price variance for July?

• A) $2,725 favourable.
• B) $2,725 unfavourable.
• C) $3,250 favourable.
• D) $3,250 unfavourable.

---

Definitions:

Situation

The set of circumstances or context in which events occur, influencing the outcomes of actions or decisions.

Dispositional Attribution

The tendency to attribute people's behaviors to their character or personality, rather than considering external factors that might influence their actions.

Situational Attribution

The process of attributing a person's actions to external circumstances or situations rather than to internal characteristics.

Self-serving Bias

A common tendency for individuals to attribute their successes to internal factors while blaming external factors for their failures.