[The Following Information Applies to the Questions Displayed Below

question 23

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.
-The materials quantity variance for James's June operations is:

• A)$3,150 favorable.
• B)$3,210 unfavorable.
• C)$1,480 unfavorable.
• D)$3,210 favorable.

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Definitions:

Operating Expenses

Expenses incurred through normal business operations, excluding costs related to production or manufacturing.

Cost of Goods Sold

Financial outlays directly incurred during the production of goods a company retails, involving material and labor.

Merchandise

Goods that are bought and sold in the course of business operations, typically in a retail or wholesale context.

Credit Terms

The conditions under which a seller extends credit to a buyer, including the repayment time frame and any interest or discounts.