Refer to RJB Builders. What was the materials usage variance?
A) $2,000 U
B) $2,000 F
C) $1,900 U
D) $1,900 F

Question

Quizplus · Accepted Answer

The materials usage variance is calculated as the difference between the actual quantity of materials used and the standard quantity of materials allowed, multiplied by the standard price per unit. In this case, the actual quantity of materials used was 10,000 units, the standard quantity of materials allowed was 9,500 units, and the standard price per unit was $2. Therefore, the materials usage variance is (10,000 - 9,500) * $2 = $2,000 U.