Keller Company Has a Materials Price Standard of $2

question 105

Multiple Choice

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.

---

Definitions:

Data Warehouse

A centralized repository for storing, managing, and analyzing large sets of structured data from various sources.

Internal Data Sources

Information collected from within an organization, used for decision making and strategic planning.

Test Market

A geographic region or demographic group used by companies to evaluate the potential success of a new product or service before a wider release.

Kellogg's Cereal

A brand of breakfast cereals produced by the Kellogg Company, known for its wide range of products.