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    5. Product X requires 10 Kg of material at the rate of Rs. 5 per Kg. The actual consumption of material

    Question

    Product X requires 10 Kg of material at the rate of Rs.

    5 per Kg. The actual consumption of material for the manufacturing of product X came to 12 Kg of material at the rate of Rs. 6 per Kg. Calculate material cost variance.
    A Rs. 20 Correct Answer Incorrect Answer
    B Rs. 12 Correct Answer Incorrect Answer
    C Rs. 21 Correct Answer Incorrect Answer
    D Rs. 22 Correct Answer Incorrect Answer

    Solution

    The correct answer is D

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