Question - Royal Company uses a standard costing system. The following information pertains to direct materials for the month of September:
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Standard price per kilogram
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$17.00
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Actual purchase price per kilogram
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$16.50
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Quantity purchased
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3,100 kg
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Quantity used
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3,950 kg
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Standard quantity allowed for actual output
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4,000 kg
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Actual output
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1,000 units
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Royal Company reports its material price variances at the time of purchase. What is the material usage variance for Royal Company?
$850 U
$850 F
$1,950 F
$2,850 F