Matinna Co All Materials Purchased During the Month Were Issued to Production

question 125

Multiple Choice

Matinna Co. maintains no inventories and has the following data pertaining to one of its direct materials in July: $\begin{array}{lrr}\text { Standard quantity of direct materials for the units manufactured (SQ) } & 30,000 \\\text { Direct materials purchases-actual cost } & \$ 63,000 \\\text { Standard price per unit of direct materials (SP) } & \$ 2.00 \\\text { Direct material efficiency variance-favorable } & \$ 4,500\end{array}$ All materials purchased during the month were issued to production.
What was the company's direct materials flexible-budget (FB) variance for July (rounded to the nearest dollar) ?

• A) $1,500 favorable.
• B) $3,000 unfavorable.
• C) $3,000 favorable.
• D) $7,500 unfavorable.
• E) $7,500 favorable.

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Definitions:

Cross-functional Team

A cross-functional team is a group of individuals with varied expertise and skills from different departments, working together towards a common goal.

Entire Product

The complete offering that includes the core product along with any additional services, features, or benefits that enhance its value.

Set of Customers

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