alleryStart learning →A job allows 400 kg of material at Rs 10 per kg standard. 420 kg were used. What is the usage variance?
ARs 200 favourable
BRs 400 adverse
CRs 200 adverse
DRs 420 adverse
Answer & Solution
Correct answer: C. Rs 200 adverse
Excess use is 20 kg at the standard Rs 10, so Rs 200, and using more than allowed is adverse.
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