Reference: 21_01
Five Rings, Inc, Has Collected the Following Data

question 128

Multiple Choice

Reference: 21_01
Five Rings, Inc, has collected the following data on one of its products:
$\begin{array}{ll}\text { Direct materials standard (4 lbs. @ \$1/lb.) } & \$ 4 \text { per finished unit } \\\text { Total direct materials cost variance-unfavorable } & \$ 13,750 \\\text { Actual direct materials used } & 150,000 \mathrm{lbs} . \\\text { Actual finished units produced } & 30,000 \text { units }\end{array}$
-The actual cost of the direct materials used is:

• A) $133,750
• B) $150,000
• C) $106,250
• D) $158,750
• E) $120,000

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Definitions:

Clients

Individuals or entities that receive professional services or advice from a business or professional in exchange for payment.

Subcontractors

External businesses or individuals hired by a main contractor to perform specific tasks or services as part of a larger project.

Public Relations

A strategic communication process that builds mutually beneficial relationships between organizations and their publics.

Standards

are established norms or requirements aimed at ensuring products, services, or systems are safe, reliable, and consistently perform as expected.