alleryStart learning →A firm planned a unit cost of Rs 75 but actually incurred Rs 70 for 1,000 units. What is the cost variance?
ARs 5,000 adverse
BRs 5,000 favourable
CRs 5 favourable
DRs 70,000 favourable
Answer & Solution
Correct answer: B. Rs 5,000 favourable
Cost was Rs 5 per unit below standard over 1,000 units, so Rs 5,000 favourable.
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