Mathematics · Cost Accounting
Calculate the material usage variance from the given information: Standard material cost for manufacturing 1,000 units of output is 400 kg of material at Rs. 2.50 per kg. When 2,000 units are produced, the actual consumption is 825 kg of material at a price of Rs. 2.70 per kg.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Rs. 62.50 Adverse✓
- 2Rs. 62.50 Favourable
- 3Rs. 67.50 Adverse
- 4Rs. 67.50 Favourable
Correct answer
Rs. 62.50 Adverse
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