Lucas Company Has Set Standards for the Manufacturing of Clay

question 42

Multiple Choice

Lucas Company has set standards for the manufacturing of clay pots to be 2 pounds of direct materials,per pot,at a cost of $3 per pound.During the current period,600 pounds of direct materials were purchased for $1842.All of the direct materials were used to manufacture 295 pots.Lucas's direct materials price variance was

• A) $72 (U).
• B) $42 (U).
• C) $72 (F).
• D) zero.

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Definitions:

Conflict Theory

Conflict theory is a social theory that views society as comprised of groups competing for limited resources, leading to conflicts and change.

Periphery Nations

Countries that are less developed than the semi-periphery and core countries, often exploited for their resources.

Power Structure

The organization of authority, influence, and power in a society or within specific institutions.

Theory of Deviance

An explanation about how societal norms and values play a role in defining and responding to behaviors that are seen as deviant.