alleryStart learning →Output was 100 units at a standard of 3 kg each at Rs 5 per kg. Actual use was 320 kg. What is the material usage variance?
ARs 100 favourable
BRs 160 adverse
CRs 100 adverse
DRs 20 adverse
Answer & Solution
Correct answer: C. Rs 100 adverse
Standard use is 100 x 3 = 300 kg, so 20 kg excess at the standard Rs 5 gives Rs 100, adverse because more was used.
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