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:

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A situation where the supply of bread is insufficient to meet the demand, often resulting in increased prices and limited availability.

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A mathematical representation showing the relationship between the quantity of a good that producers are willing to sell and the price of that good.

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Historically, small coins used in various European countries, symbolizing a small amount of currency.

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A large, nutritious tropical fruit with a hard shell, edible white flesh, and clear liquid inside, often used in food and beverages.