Mathematics · Cost Variance Analysis

In a given month, actual materials used amounted to 5650 kg. The standard material usage was 5 kg per unit. Actual output was 1075 units. If the standard material cost per unit of output is ₹ 25, what is the material usage variance?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1₹ 1,375 Adverse✓
2₹ 6,875 Adverse
3₹ 3,250 Favourable
4₹ 1,375 Favourable

Correct answer

₹ 1,375 Adverse

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In a given month, actual materials used amounted to 5650 kg. The standard material usage was 5 kg per unit. Actual output was 1075 units. If the standard material cost per unit of output is ₹ 25, what is the material usage variance?

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In a given month, actual materials used amounted to 5650 kg. The standard material usage was 5 kg per unit. Actual output was 1075 units. If the standard material cost per unit of output is ₹ 25, what is the material usage variance?

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