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:

Binocular

Related to the use of both eyes, which allows for depth perception and a wider field of view compared to vision using one eye alone.

Linear Perspective

A technique used in art and design to create the illusion of depth and distance on a flat surface.

Texture Gradient

A depth cue based on the gradual reduction of detail that occurs in surfaces as they recede from the observer, used in visual perception.

Clearness

The quality of being easily understood or free from ambiguity, often used in reference to communication, instructions, or visuals.