Accounting · Standard Costing
A company uses standard costing. The direct material standard cost is ₹50 per unit, and the standard quantity is 2 units per product. If 500 units were produced and the actual material used was 1,050 units, what is the material usage variance?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1₹1,000 Adverse
- 2₹1,000 Favorable
- 3₹2,500 Adverse✓
- 4₹2,500 Favorable
Correct answer
₹2,500 Adverse
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