James Inc.'s flexible budget for June, based upon actual output, called for the use of 11,300 pounds of materials at a standard cost of $8.20 per pound. The Production Department actually used 11,500 pounds of materials costing $7.90 per pound during June.

James's materials price variance for June is:

$3,450 unfavorable.

$3,390 favorable.

$3,450 favorable.

$3,390 unfavorable.

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

$3,390 favorable.

$3,450 unfavorable.

$1,640 unfavorable.

$3,450 favorable.

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 $1,640.

A credit to Materials Price Variance of $3,450.

A debit to Work in Process Inventory of $92,660.

A credit to Direct Materials Inventory of $92,660.