James Inc.'s flexible budget for June, based upon actual output, called for the use of 10,500 pounds of materials at a standard cost of $7.40 per pound. The Production Department actually used 10,700 pounds of materials costing $7.10 per pound during June.
1. James's materials price variance for June is:
a. $3,210 unfavorable.
b. $3,210 favorable.
c. $3,150 unfavorable.
d. $3,150 favorable.
2. The materials quantity variance for James's June operations is:
a. $3,150 favorable.
b. $3,210 unfavorable.
c. $1,480 unfavorable.
d. $3,210 favorable.
3. The journal entry to record the cost of direct materials used in June includes each of the following except:
a. A debit to Materials Quantity Variance of $1,480.
b. A credit to Materials Price Variance of $3,210.
c. A credit to Direct Materials Inventory of $77,700.
d. A debit to Work in Process Inventory of $77,700.