A Computer Chip Is Purchased to Be Used in the Manufacture

question 85

Multiple Choice

A computer chip is purchased to be used in the manufacture of a radio. The standard price of the computer chip is $50.00. During the month of January, 2,240 computer chips were purchased and used. The materials price variance was $5,600 unfavourable. The standard number of computer chips allowed for the actual number of radios manufactured during the period was 3,100 chips. What was the actual purchase price of each computer chip?

• A) $47.50 per computer chip
• B) $49.82 per computer chip
• C) $50.18 per computer chip
• D) $52.50 per computer chip

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Definitions:

Shear Zones

Zones of intense deformation within the Earth's crust where rocks are subjected to shear stress, leading to displacement.

Metamorphic Minerals

Minerals formed through the process of metamorphism, which involves the alteration of mineralogical composition of pre-existing rocks under conditions of high temperature and pressure.

Garnet

A fairly common silicate mineral with a distinctive shape but nearly any color (red is most common).

Chlorite

Chlorite refers to a group of minerals that often occurs as green flakes in metamorphic rocks and is characterized by its sheet silicate structure.