alleryStart learning →Standard cost of actual output is Rs 38,000. Actual use was 1,000 kg at Rs 43. Total material variance?
ARs 5,000 adverse
BRs 5,000 favourable
CRs 3,000 adverse
DRs 43,000 adverse
Answer & Solution
Correct answer: A. Rs 5,000 adverse
Actual cost is 43,000 against 38,000 allowed, a 5,000 adverse variance made of price and usage.
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