Cavern Company's Output for the Current Period Results in a $5,250

question 155

Multiple Choice

Cavern Company's output for the current period results in a $5,250 unfavorable direct material price variance. The actual price per pound is $56.50 and the standard price per pound is $55.00. How many pounds of material are used in the current period?

• A) 3,750.
• B) 4,000.
• C) 5,393.
• D) 3,500.
• E) 5,110.

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Definitions:

Widespread Costs

involve expenses that affect a large segment of the economy, often implying that these costs are distributed across many individuals or entities.

Private-sector Provision

Services or goods provided by businesses owned by individuals or shareholders, rather than by the government.

Public-sector Provision

Involves services and goods provided by the government or public entities to ensure welfare and infrastructure availability to the public.

Rent-seeking

The practice of gaining wealth without creating new wealth, typically through manipulating the social or political environment in which economic activities occur.