Roberts Company uses a standard costing system.The following information pertains to direct materials for the month of July: Roberts Company reports its material price variances at the time of purchase.
-
What is the material usage variance for Roberts Company?
A) $900 (
B) $1,950 (
C) $2,850 (
D) $900 (

Question

Roberts Company uses a standard costing system.The following information pertains to direct materials for the month of July:  Roberts Company reports its material price variances at the time of purchase.
-
What is the material usage variance for Roberts Company?
A) $900 (
B) $1,950 (
C) $2,850 (
D) $900 (

Quizplus · Accepted Answer

The material usage variance is calculated as the difference between the standard quantity allowed for actual production and the actual quantity used, multiplied by the standard cost per unit. The correct choice is $900 (F), indicating a favorable variance.

Roberts Company Uses a Standard Costing System