alleryStart learning →A standard material price is Rs 20 per kg. Actual price is Rs 22 and 500 kg were bought. What is the price variance?
ARs 1,000 favourable
BRs 1,000 adverse
CRs 2,000 adverse
DRs 500 adverse
Answer & Solution
Correct answer: B. Rs 1,000 adverse
Price gap is 2 per kg on 500 kg, giving Rs 1,000, and a higher actual price makes it adverse.
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