An LCD Screen Is Purchased to Be Used in the Manufacturing

question 230

Multiple Choice

An LCD screen is purchased to be used in the manufacturing of a digital watch. The Standard Price (SP) for the LCD screen used is $60.00. During the month of February, 4200 screens were purchased and used. The materials price variance was $14,700 unfavorable. The standard number of screens allowed for the actual number of watches manufactured during the period was 26,000 screens. The actual purchase price of each LCD screen may be closest to

• A)$1.77 per LCD screen.
• B)$60.29 per LCD screen.
• C)$56.50 per LCD screen.
• D)$63.50 per LCD screen.

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Definitions:

Highest-Valued Alternative

The best next option forgone as a result of making a particular decision, often related to the concept of opportunity cost.

Production Possibilities Curve

A curve that outlines all possible combinations of total output that could be produced, assuming (1) a fixed amount of productive resources, (2) a given amount of technical knowledge, and (3) full and efficient use of those resources. The slope of the curve indicates the amount of one product that must be given up to produce more of the other.

Economic Organization

The structured systems and institutions through which economic activity is conducted and regulated, including markets, firms, and government agencies.

Capital Stock

The total value of all physical assets owned by a company or country, used in the production of goods and services.