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:

Barriers To Entry

Economic, procedural, or regulatory obstacles that prevent new competitors from easily entering an industry or area of business.

Oligopolistic

Pertaining to a market structure where a small number of firms dominate the industry, influencing prices and marketing strategies.

Perfectly Competitive

A market structure characterized by a complete absence of rivalry among the sellers and an infinite number of buyers and sellers, where no single buyer or seller has market power.

Identical Products

Goods that are exactly the same in every feature, quality, and specification, allowing no variation between them.