Question

Standard material for 1 unit = 4 kg at ₹50/kg. For actual production of 1,200 units, actual material used was 4,800 kg costing ₹2,40,000. Calculate Material Cost Variance (MC

  • V , Price Variance (MP
  • V , and Usage Variance (MU
  • V .
A MCV = ₹12,000 A; MPV = ₹9,600 A; MUV = ₹2,400 A
B MCV = ₹0; MPV = ₹0; MUV = ₹0
C MCV = ₹0; MPV = ₹0; MUV = ₹2
D MCV = ₹12,000 F; MPV = ₹9,600 F; MUV = ₹2,400 F
E None
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