Perkins Company, Which Has a Standard Cost System, Had 500

question 25

Multiple Choice

Perkins Company, which has a standard cost system, had 500 pounds of raw material X in its inventory at June 1, purchased in May for £1.20 per pound and carried at a standard cost of £1.00 per pound. The following information pertains to raw material X for the month of June: $\begin{array}{ll}\text { Actual pounds purchased } & 1,400 \\\text { Actual pounds used } & 1,500 \\\text { Standard pounds allowed for actual production } & 1,300 \\\text { Standard cost per pound } & £ 1.00 \\\text { Actual cost per pound } & £ 1.10\end{array}$
The unfavourable materials purchase price variance for raw material X for June was

• A)£ 0.
• B)£130.
• C)£140.
• D)£150.

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Definitions:

Interest Rates

Interest rates represent the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.

Own Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, ceteris paribus.

Cell Phones

Portable electronic devices that enable users to make voice calls, send text messages, and access various forms of digital media and internet services.

Pay Phone Industry

The business sector involved in providing public telephones that operate with the insertion of coins or by credit card payments.