The Wright Company Has a Standard Costing System The Actual Price Per Pound of Direct Materials Purchased in Data

question 53

Multiple Choice

The Wright Company has a standard costing system. The following data are available for September: $\begin{array}{ll}\text { Actual quantity of direct materials purchased } & 25,000 \text { pounds } \\\text { Standard price of direct materials } & £ 2 \text { per pound } \\\text { Material price variance } & £ 2,500 \text { unfavourable }\end{array}$
The actual price per pound of direct materials purchased in September is

• A)£1.85.
• B)£2.00.
• C)£2.10.
• D)£2.15.

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Definitions:

Sales Contract

A legally binding agreement between two parties where the seller agrees to sell and the buyer agrees to buy goods or services under specific terms.

United Nations Convention

An agreement or treaty among member states of the United Nations to regulate specific global issues, adhering to internationally agreed-upon principles.

International Sale Of Goods

Transactions involving the sale of goods between parties situated in different countries, usually governed by specific international laws.

Avoid Obligations

Acts or strategies aimed at legally bypassing or evading responsibilities, duties, or liabilities one is bound to.