A chemical is manufactured by combining two standard items Input-X (Standard price ₹60/kg) and Input-Y (₹45/kg) in the ratio 60%:40%. Ten percent of input is lost during processing. If during a month 1,200 Kgs. of chemic
CS Executive · Cost and Management Accounting · PYQS · June 2015
A chemical is manufactured by combining two standard items Input-X (Standard price ₹60/kg) and Input-Y (₹45/kg) in the ratio 60%:40%. Ten percent of input is lost during processing. If during a month 1,200 Kgs. of chemical is produced incurring a total cost of ₹69,600, the total material cost variance will be —
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Standard Costing
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