Keller Company Has a Materials Price Standard of $2

question 127

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 total materials variance is

• A) $2,000 U.
• B) $2,000 F.
• C) $2,100 U.
• D) $2,100 F.

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Definitions:

Pro Rata Basis

A method of allocating amounts or resources proportionally, according to a specific rate, percentage, or share.

Titled To

The legal right to own, possess, or hold a particular property or position.

Accounting Firm

A business specialized in providing professional services related to accounting, including auditing, tax preparation, and financial consulting.

Accounting Business

An enterprise that provides financial services such as bookkeeping, tax preparation, and financial auditing to individuals or other businesses.