The Standard Cost Card for One Unit of a Certain

question 1

Multiple Choice

The standard cost card for one unit of a certain finished product shows the following: $$\begin{array} { l l l } & \text { Standard Quantity or Hours } & \text { Standard Price or Rate } \\\text { Direct materials } & 10 \text { pounds } & £ ? \text { per pound } \\\text { Direct labour } & 2.5 \text { hours } & £ 16 \text { per hour } \\\text { Variable manufacturing overhead } & 1.5 \text { hours } & £ 10 \text { per hour }\end{array}$$
If the total standard variable cost for one unit of finished product is £85, then the standard price per pound for direct materials is

• A)£1.74.
• B)£4.60.
• C)£5.90.
• D)£3.00.

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Definitions:

Foot-In-The-Door Phenomenon

A principle in social psychology suggesting people are more likely to agree to a large request after first agreeing to a small, related request.

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues, such as attractiveness or celebrity endorsement, to elicit a response without requiring deep processing of the message content.

Fundamental Attribution Error

The tendency to overemphasize personality traits and underestimate situational factors when explaining other people's behavior.

Role Playing

A method or technique for training, therapy, or entertainment in which participants act out roles in a narrative or scenario.