alleryStart learning →A firm paid Rs 9,600 for 800 kg of material. The standard price is Rs 11 per kg. What is the material price variance?
ARs 800 favourable
BRs 1,200 adverse
CRs 800 adverse
DRs 400 adverse
Answer & Solution
Correct answer: C. Rs 800 adverse
Standard cost of 800 kg is Rs 8,800; actual Rs 9,600 exceeds it by Rs 800, which is adverse.
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