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:

Inferior

Situated below or directed downward; in anatomy, used to denote the lower portion of a structure or the body.

Lateral

Positioned on or relating to the side of a body or structure.

Heart

The heart is a muscular organ responsible for pumping blood through the blood vessels by repeated, rhythmic contractions, supplying oxygen and nutrients to the body while removing carbon dioxide and other wastes.

Parasagittal

A plane or section that is parallel to the sagittal plane but is offset from the midline of the body.