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Kennedy Inc. has the following data for its operation in August:
| | | | | |
| Increase in direct materials inventory | | 100 | Sets | |
| Direct materials purchased (AQ) | | 1,600 | Sets | |
| Finished goods manufactured | | 700 | units | |
| Direct materials purchase-price variance | $ | 576 | Favorable | |
| Budgeted | | | | |
| Finished goods to manufacture | | 800 | Units | |
| Direct materials purchases | | 2,000 | Sets | |
| Direct materials per unit of finished goods | | 2 | Sets | |
| Direct materials price per set (SP) | $ | 4.70 | | |
| |
What was the direct materials usage variance in August, rounded to the nearest dollar?
Multiple Choice
$940 unfavorable.
$705 favorable.
$235 unfavorable.
$470 unfavorable.
$705 unfavorable.
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