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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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