[The Following Information Applies to the Questions Displayed Below

question 71

Multiple Choice

[The following information applies to the questions displayed below.]
James Inc.'s flexible budget for June,based upon actual output,called for the use of 10,500 pounds of materials at a standard cost of $7.40 per pound.The Production Department actually used 10,700 pounds of materials costing $7.10 per pound during June.
-James's materials price variance for June is:

• A)$3,150 unfavorable.
• B)$3,150 favorable.
• C)$3,210 unfavorable.
• D)$3,210 favorable.

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Definitions:

Random Events

Outcomes or occurrences that are unpredictable and determined entirely by chance.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1, with 1 indicating certainty.

Tree Diagram

A diagram used to show the total number of possible outcomes in a probability experiment.

Simple Events

A simple event is an outcome or event that cannot be further broken down into simpler components within the context of a probability experiment.