A Computer Chip Is Purchased to Be Used in the Manufacture

question 61

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 unfavorable.The standard number of computer chips allowed for the actual number of radios manufactured during the period was 31,000 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

---

Definitions:

Jointly Plan

The act of working together with one or more parties to develop a coordinated strategy or action plan.

Jointly Control

The shared authority and responsibility over a particular task, project, or domain, often seen in partnerships or collaborative working environments.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing to pursue a particular action.

Incentive

An incentive is a motivational factor or reward that encourages people to perform an action or adopt a behavior.