Standard quantity 1,000 kg, actual quantity 1,100 kg, standard price ₹10. Material usage variance is:

1. Material usage variance formula: (Standard quantity − Actual quantity) × Standard price. 2. Substitute: (1,000 − 1,100) × 10 = −100 × 10 = −1,000. 3. The negative sign indicates an adverse variance because actual usage exceeded standard. 4. Hence the variance is ₹1,000 adverse. _Source: ICAI BoS Inter Paper 3, Ch 13 "Standard Costing", §13.5.1 Illus 4_