Malkovich Company Uses a Standard Costing System Malkovich Company Reports Its Material Price Variances at the Time

question 77

Multiple Choice

Malkovich Company uses a standard costing system. The following information pertains to direct materials for the month of July: $\begin{array}{ll}\text { Standard price per lb. } & \$ 18.00 \\\text { Actual purchase price per lb. } & \$ 16.50 \\\text { Quantity purchased } & 3,100 \mathrm{lbs} . \\\text { Quantity used } & 2,950 \mathrm{lbs} \\\text { Standard quantity allowed for actual output } & 3,000 \mathrm{lbs} \\\text { Actual output } & 1,000 \text { units }\end{array}$ Malkovich Company reports its material price variances at the time of purchase.
What is the material usage variance for Malkovich Company?

• A)$2,850 (F)
• B)$1,950 (F)
• C)$900 (F)
• D)$900 (U)

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Definitions:

Genetic Disorders

Diseases or conditions that result from abnormalities in an individual's DNA, often inherited from one's parents.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing baby and removing waste products.

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The degree to which the phenotype is open to influence by the environment rather than determined by the genotype.

Environmental Conditions

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