Reference: 21_02
Kermit Enterprises Has Collected the Following Data on One

question 144

Multiple Choice

Reference: 21_02
Kermit Enterprises has collected the following data on one of its products:
$\begin{array}{ll}\text { Direct materials standard (4 lbs. @ \$1/lb.) } & \$ 4 \text { per finished unit } \\\text { Total direct materials cost variance-unfavorable } & \$ 7,500 \\\text { Actual direct materials used } & 150,000 \mathrm{lbs} . \\\text { Actual finished units produced } & 30,000 \text { units }\end{array}$
-The direct materials price variance is:

• A) $30,000 favorable
• B) $30,000 unfavorable
• C) $22,500 favorable
• D) $37,500 unfavorable
• E) $37,500 favorable

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Definitions:

Oral Stage

A phase in Freud's psychosexual development theory during which an infant's pleasure centers on the mouth.

Exploration

The action of traveling or searching through an unfamiliar area to learn about it or discover new information.

Anal Stage

The second stage in Freud's psychosexual development, occurring from about 18 months to three years of age, where the child's focus is on controlling bladder and bowel movements.

Latency Stage

A phase in Freud's psychosexual development theory occurring between the ages of six and puberty, where there is a reduction in sexual urges and interests.