Ventura Uses a Just-In-Time (JIT) Manufacturing System for All Its

question 97

Multiple Choice

Ventura uses a just-in-time (JIT) manufacturing system for all its materials, components, and products. The master budget of the company for June called for use of 11,000 square feet of materials, while the flexible budget for the actual output of the month had 10,000 square feet of materials at a standard cost (SP) of $9.60 per square foot. Company records show that the actual price paid (AP) for the materials used in June was $9.50 per square foot, and that the direct materials purchase-price variance for the month was $1,040.

The materials usage (quantity) variance for June, to the nearest dollar, was:

• A) $3,800 unfavorable.
• B) $3,840 unfavorable.
• C) $5,700 unfavorable.
• D) $5,760 unfavorable.
• E) $8,560 favorable.

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Definitions:

Schizophrenia

A chronic and severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Prefrontal Cortex

The anterior part of the frontal lobes of the brain, involved in complex behaviors, decision making, and moderating social behavior.

Social Drift

A theory suggesting individuals with severe mental illness may move to lower socio-economic groups due to the costs or consequences of their illness.

Schizophrenia

A psychiatric disorder marked by significant disturbances in thought, perception, and behavior, leading to impaired functioning.