📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      A company produces 1,000 units. Standard material

      consumption per unit is 4 kg @ ₹25/kg. Actual consumption is 4,500 kg @ ₹24/kg. Calculate the Material Usage Variance.
      A ₹10,000 Adverse Correct Answer Incorrect Answer
      B ₹12,500 Adverse Correct Answer Incorrect Answer
      C ₹12,500 Favourable Correct Answer Incorrect Answer
      D ₹15,000 Adverse Correct Answer Incorrect Answer
      E ₹12,500 Adverse Correct Answer Incorrect Answer

      Solution

      Standard qty = 1,000 × 4 = 4,000 kg. Actual qty = 4,500 kg. Usage Variance = (Standard qty – Actual qty) × Std. rate = (4,000 – 4,500) × 25 = –500 × 25 = ₹12,500 Adverse.

      Practice Next
      More Accounts Questions
      ask-question