Jackson Industries Uses a Standard Cost System in Which Direct

question 100

Multiple Choice

Jackson Industries uses a standard cost system in which direct materials inventory is carried at standard cost.Jackson has established the following standards for one unit of product. During May,Jackson purchased 125,000 pounds of direct material at a total cost of $475,000.The total factory wages for May were $364,000,90 percent of which were for direct labor.Jackson manufactured 22,000 units of product during May using 108,000 pounds of direct material and 28,000 direct labor-hours. The price variance for the direct material acquired by Jackson Industries during May is:

• A)$21,600 Favorable
• B)$25,000 Unfavorable
• C)$28,000 Favorable
• D)$21,600 Unfavorable

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Definitions:

Competitive Strategies

Approaches that businesses adopt to gain an advantage over their competitors, including cost leadership, differentiation, and focus strategies.

Emergent Strategies

Refers to unplanned strategies that evolve naturally due to changes in the internal and external environments of an organization.

Social Conduct

The behaviors and actions that are considered acceptable or expected by society or within a specific community.

Strategic Planning Process

A comprehensive process that organizations use to define their strategy, direction, and make decisions on allocating their resources, including capital and people, to pursue this strategy.