Economics · Cost Accounting
A textile unit uses standard costing. The standard specification requires 5 kg of cotton per unit of finished cloth at a standard price of Rs. 200 per kg. During the production of 10,000 units, the company consumed 52,000 kg of cotton purchased at Rs. 185 per kg. Calculate the Material Usage Variance.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Rs. 4,00,000 Adverse✓
- 2Rs. 7,80,000 Favorable
- 3Rs. 3,70,000 Adverse
- 4Rs. 4,00,000 Favorable
Correct answer
Rs. 4,00,000 Adverse
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Preparing for Economics?
Practice full-length Economics mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Cost Accounting MCQs →Want more practice questions on Cost Accounting?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Cost Accounting