Lucas Company Has Set Standards for the Manufacturing of Clay

question 18

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 $1872. All of the direct materials were used to manufacture 295 pots. Lucas's direct materials price variance was

• A) $102 (U).
• B) $72 (U).
• C) $102 (F).
• D) zero.

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Definitions:

Terminated

Ended or concluded in a legal, employment, or contractual context.

Dissolution

The process of legally terminating the existence of an entity, such as a corporation or partnership.

Winding Up

The process of dissolving a company, involving settling debts, liquidating assets, and distributing the remaining funds to shareholders, if any.

Act of the Court

An action taken or an order made by a court of law.