Adding social software and features to existing commerce sites is one of the two basic practices of social commerce

Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:

Materials:(7 kilograms × $10 per kilogram)$70 Labor:(7 hours × $17 per hour)$119 All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July: In-process beginning inventory none In-process ending inventory—90% complete as to labor 1,100unitsUnits completed during the month 7,300unitsBudgeted output 8,100unitsPurchases of materials, in kilograms (AQ) 34,000 Total actual labor costs incurred$531,000 Direct labor hours worked (AQ) 34,000hoursMaterials purchase-price variance$2,300unfavorableIncrease in materials inventory in July 1,600kilogramsBeginning inventory of materials 0kg. The direct materials usage variance for July, to the nearest dollar, was:

If an expense is paid with cash

A. assets will decrease. B. retained earnings will increase. C. liabilities will increase. D. expenses will decrease.