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
B ₹12,500 Adverse
C ₹12,500 Favourable
D ₹15,000 Adverse
E ₹12,500 Adverse
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