Pardee, Inc

question 31

Multiple Choice

Pardee, Inc. completed operations for the week and the accountant was preparing to make journal entries necessary to prepare a set of interim financial statements. Unfortunately, he discovered some of the data concerning direct materials had been lost. He was able to find the following: Efficiency variance $4,500 Unfavourable
Standard price $10 per unit
Actual units purchased 9,000
Inventory decrease 1,000 units
Budget variance $900 Favourable
The actual direct materials price paid per unit was:

• A)$9.60
• B)$9.40
• C)$10.00
• D)$10.60

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Definitions:

Average Accounting Rate

The rate of return on an investment, calculated by dividing the average profit by the average amount invested. This is a rephrased definition for Average Accounting Return.

IRR Cross-Over Rate

The rate at which the net present value of an investment equals zero, specifically when comparing two projects to see at what discount rate they yield the same net present value.

Initial Cost

The initial expense required to acquire an asset or start a project, not including any subsequent or operational costs.

Ranking Conflicts

Disputes arising from the prioritization or ordering of different interests, claims, or benefits.