alleryStart learning →Output allows 950 kg at standard Rs 40 a kg, but 1,000 kg were used. Material usage variance?
ARs 2,000 favourable
BRs 2,000 adverse
CRs 3,000 adverse
DRs 5,000 adverse
Answer & Solution
Correct answer: B. Rs 2,000 adverse
The excess 50 kg valued at the standard Rs 40 gives 2,000, adverse as more was used.
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