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).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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