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

Multiple Choice

Royal Company uses a standard costing system.The following information pertains to direct materials for the month of September: $$\begin{array} { l r } \text { Standard price per kilogram } & \$ 17.00 \\\text { Actual purchase price per kilogram } & \$ 16.50 \\\text { Quantity purchased } & 3,100 \mathrm {~kg} \\\text { Quantity used } & 3,950 \mathrm {~kg} \\\text { Standard quantity allowed for actual output } & 4,000 \mathrm {~kg} \\\text { Actual output } & 1,000 \text { units }\end{array}$$ Royal Company reports its material price variances at the time of purchase.What is the material usage variance for Royal Company?

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