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:

Tariffs

Taxes imposed by a government on imported goods, often to protect domestic industries or to raise revenue.

Domestic Sellers

Domestic sellers refer to businesses or individuals that sell goods or services within their own country.

Domestic Buyers

Individuals or entities within a country that purchase goods or services from sources within the same country.

Tariff

A tax imposed by a government on imports or exports of goods, often used to protect domestic industries or generate revenue.