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    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 (MCV), Price Variance (MPV), and Usage Variance (MUV).
    A MCV = ₹12,000 A; MPV = ₹9,600 A; MUV = ₹2,400 A Correct Answer Incorrect Answer
    B MCV = ₹0; MPV = ₹0; MUV = ₹0 Correct Answer Incorrect Answer
    C MCV = ₹0; MPV = ₹0; MUV = ₹2 Correct Answer Incorrect Answer
    D MCV = ₹12,000 F; MPV = ₹9,600 F; MUV = ₹2,400 F Correct Answer Incorrect Answer
    E None Correct Answer Incorrect Answer

    Solution

    • Std cost for actual output = 1,200×4×₹50 = ₹2,40,000. • Actual cost = ₹2,40,000 → MCV = 0, MPV = 0, MUV = 0 (perfect match).

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