alleryStart learning →2,000 kg bought at Rs 52 against a standard Rs 50 per kg. Price variance?
ARs 4,000 adverse
BRs 2,000 adverse
CRs 104,000 adverse
DRs 4,000 favourable
Answer & Solution
Correct answer: A. Rs 4,000 adverse
(52 - 50) x 2,000 = 4,000, and paying more than standard is adverse.
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