Keller Company has a materials price standard of $2.00 per pound. Five thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 5,000 pounds, although the standard quantity allowed for the output was 4,500 pounds.
Keller Company's materials quantity variance is
A) $1,000 U.
B) $1,000 F.
C) $1,100 F.
D) $1,100 U.

Question

Quizplus · Accepted Answer

The materials quantity variance is calculated as (Actual Quantity - Standard Quantity) x Standard Price. Here, (5,000 - 4,500) x $2.00 = $1,000 Unfavorable (U).

Keller Company Has a Materials Price Standard of $2