Ventura uses a just-in-time (JIT) manufacturing system for all of its materials, components, and products. The master budget of the company for June called for use of 11,000 square feet of materials, while the flexible budget for the actual output of the month had 10,000 square feet of materials at a standard cost of $9.70 per square foot. Company records show that the actual price paid for the materials used in June was $9.68 per square foot, and that the direct materials purchase-price variance for the month was $1,040.
The materials flexible budegt variance for June was:
A) $407,900 unfavorable
B) $406,360 unfavorable
C) $407,400 unfavorable
D) $406,860 unfavorable
E) $1,040 favorable