alleryStart learning →Std mix 60% A at Rs 10/kg, 40% B at Rs 20/kg. Used 50 kg each of A and B. Mix variance in Rs?
A100 adverse
B100 favourable
C1,500 adverse
D50 adverse
Answer & Solution
Correct answer: A. 100 adverse
Actual mix costs 500 + 1,000 = Rs 1,500 at standard prices, against Rs 1,400 for the standard mix of 100 kg, so Rs 100 adverse.
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