BANK SEBI Grade A Phase 1 & Phase 2 Mock Test 2024 Accounting and Auditing Cost and Management Accounting Standard costing
Answer the correct material usage variance from the information given below:
Standard material cost for manufacturing 1000 units of an output is 400 kgs of material at Rs. 2.50 per kg. When 2000 units are produced, it is found that actual consumption was of 825 kgs material at a price of Rs. 2.70 per kg.:
1
Rs. 67.50 Favourable
2
Rs. 67.50 Adverse
3
Rs. 62.50 Favourable
4
Rs. 62.50 Adverse
5
None of the above