Tony\'s Inc. flexible budget for June, based upon actual output, called for the
ID: 2380082 • Letter: T
Question
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.Explanation / Answer
10.
DM Price Variance = ( SP ? AP )