The Following Information Summarizes the Standard Cost for Producing One

question 142

Multiple Choice

The following information summarizes the standard cost for producing one metal tennis racket frame at Spaulding Industries.In addition,the variances for one month's production are given.Assume that all inventory accounts have zero balances at the beginning of the month. $$\begin{array}{l}\begin{array} { | l | l | } \hline \text { Variances: }\\\hline \text { Material price } & 244.75 \text { unfavorable } \\\hline \text { Material quantity } & 500.00 \text { unfavorable } \\\hline \text { Labor rate } & 520.00 \text { favorable } \\\hline \text { Labor efficiency } & 2,080.00 \text { unfavorable } \\\hline\end{array}\end{array}$$ What was the actual price paid for the direct material during the month,assuming all materials purchased were put into production?

• A) $4.34.
• B) $4.22.
• C) $4.11.
• D) $4.00.

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