James Inc.'s flexible budget for June, based upon actual output, called for the use of 9,600 pounds of materials at a standard cost of $6.50 per pound. The Production Department actually used 9,800 pounds of materials costing $6.20 per pound during June.

48.

James's materials price variance for June is:

	$2,940 favorable.
	$2,940 unfavorable.
	$2,880 unfavorable.
	$2,880 favorable.

49.

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

	$2,880 favorable.
	$2,940 unfavorable.
	$1,300 unfavorable.
	$2,940 favorable.

50.

The journal entry to record the cost of direct materials used in June includes each of the following except:

	A debit to Materials Quantity Variance of $1,300.
	A credit to Direct Materials Inventory of $62,400.
	A credit to Materials Price Variance of $2,940.
	A debit to Work in Process Inventory of $62,400.