Tony's Inc. flexible budget for June, based upon actual output, called for the use of 10,000 pounds of materials at a standard cost of $6.10 per pound. The Production Department actually used 10,300 pounds of materials costing $5.80 per pound during June.

10. Refer to the information above. Tony's materials price variance for June is:

A) $3,000 unfavorable.

B) $3,000 favorable.

C) $3,090 unfavorable.

D) $3,090 favorable.

The materials quantity variance for Tony's June operations is:Answer

A) $3,000 favorable.

B) $3,060 unfavorable.

C) $1,830 unfavorable.

D) $3,060 favorable.

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

		A) A debit to Work in Process Inventory of $61,000.
		B) A credit to Materials Price Variance of $3,090.
		C) A credit to Direct Materials Inventory of $61,000.
		D) A debit to Materials Quantity Variance of $1,830.