Grayson Industries Has Collected the Following Data for One of Its

question 55

Multiple Choice

Grayson Industries has collected the following data for one of its products: $$\begin{array} { | l | l | } \hline \text { Direct materials standard (4 pounds per unit @ \$0.50/b.) } & \$ 2 \text { per finished good } \\\hline \text { Direct materials flexible budget variance-unfavorable } & \$ 10,000 \\\hline \text { Actual direct materials used } & 40,000 \text { pounds } \\\hline \text { Actual firished goods produced } & 24,000 \text { urits } \\\hline\end{array}$$
- What is the actual cost of the direct materials used per pound?

• A)$1.45
• B)$.50
• C)$.95
• D)$1.20

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Definitions:

Mutually Reinforcing

A situation or relationship in which two or more elements intensify, enhance, or further each other's effects, often in a positive feedback loop.

Phenotype

The observable physical or physiological traits of an organism, resulting from both genetic makeup and environmental influences.

Skeletal Structure

The framework of bones that supports and gives form to the body, protects internal organs, and facilitates movement.

Hair Texture

The natural appearance and feel of one's hair, which can range from straight to curly and is often influenced by genetic factors.