alleryStart learning →Standard material cost for the output was Rs 8,000 but actual material cost was Rs 8,600. What is the variance?
ARs 600 favourable
BRs 8,600 adverse
CRs 16,600 adverse
DRs 600 adverse
Answer & Solution
Correct answer: D. Rs 600 adverse
Actual exceeds standard by Rs 600, so the total material cost variance is adverse.
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