alleryStart learning →Standard price Rs 25, actual Rs 22, actual use 800 kg, allowed 780 kg. Net material cost variance?
ARs 1,900 favourable
BRs 2,400 favourable
CRs 500 adverse
DRs 1,900 adverse
Answer & Solution
Correct answer: A. Rs 1,900 favourable
Price variance is 2,400 favourable and usage variance 500 adverse, leaving 1,900 favourable.
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