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:

Benzoyl Peroxide

Benzoyl peroxide is an organic compound used primarily as an acne treatment, known for its antibacterial properties, with the formula (C6H5CO)2O2.

Free-radical Polymerization

A method of polymerization where a polymer forms by the successive addition of free-radical building blocks.

Styrene

A colorless liquid that is used in the manufacture of polystyrene plastics, rubber, and resins.

Branching

The deviation from a straight chain in a molecule by having side chains or branches in its structure.