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Maximus Ltd uses a standard costing system. The following information pertains to direct materials for the month of July: Standard price per kg 18.00 Actual
Maximus Ltd uses a standard costing system. The following information pertains to direct materials for the month of July:
Standard price per kg | 18.00 |
Actual purchase price per kg | 16.50 |
Quantity purchased | 3 100 kg |
Quantity used | 2 950 kg |
Standard quantity allowed for actual output | 3 000 kg |
Actual output | 1 000 units |
What is the materials usage variance for Maximus Ltd?
a. 1 850 (Favourable)
b. 900 (Adverse)
c. 2 850 (Favourable)
d. 900 (Favourable)
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