alleryStart learning →Standard price Rs 40 a kg, actual price Rs 43, 1,000 kg bought and used. Material price variance?
ARs 3,000 favourable
BRs 1,000 adverse
CRs 3,000 adverse
DRs 4,300 adverse
Answer & Solution
Correct answer: C. Rs 3,000 adverse
The extra Rs 3 a kg on 1,000 kg costs 3,000 more than standard, which is adverse.
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