Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July:

Standard price per lb.	$18.00
Actual purchase price per lb.	$16.50
Quantity purchased	3,100 lbs.
Quantity used	2,950 lbs.
Standard quantity allowed for actual output	3,000 lbs.
Actual output	1,000 units

Malkovich Company reports its material price variances at the time of purchase. What is the material usage variance for Malkovich Company?

a.$1,950 (F)

b.$900 (F)

c.$900 (U)

d.$2,850 (F)

2.

When there is an outside market for an intermediate product that is perfectly competitive, the most equitable method of transfer pricing is

a.production cost pricing.

b.market price.

c.cost plus markup pricing.

d.variable cost pricing.