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.

---

Definitions:

Vital Role

A crucial position or function that is essential to the operation or success of an organization or system.

Technology Play

A strategic business move focusing on the development, use, or investment in technology to gain a competitive edge.

BPM

Business Process Management, involving the modeling, automation, execution, control, measurement, and optimization of business activity flows.

BPI

Business Process Improvement, a systematic approach to help any organization optimize its underlying processes to achieve more efficient results.