Std 4 kg a unit at Rs 12/kg. 250 units used 1,050 kg. Usage variance in Rs?
A600 favourable
B600 adverse
C50 adverse
D12,600 adverse
Answer & Solution
Correct answer: B. 600 adverse
Standard use is 1,000 kg; 50 kg extra at Rs 12 gives Rs 600, adverse.
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