alleryStart learning →Standard cost allowed is Rs 60,000 and actual material cost is Rs 63,500. Total variance?
ARs 2,500 adverse
BRs 123,500 adverse
CRs 3,500 adverse
DRs 3,500 favourable
Answer & Solution
Correct answer: C. Rs 3,500 adverse
63,500 - 60,000 = 3,500 more cost than standard, so adverse.
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