If material price variance is ₹400 (A) and material cost variance is ₹600 (F), the material usage variance is:
CS Executive · Cost and Management Accounting · PYQS · December 2014
If material price variance is ₹400 (A) and material cost variance is ₹600 (F), the material usage variance is:
Answer & Explanation:
Correct Answer: Option (A)
Correct answer: (A) ₹1,000 (F). Usage variance = total cost variance − price variance = 600F − 400A = 1,000F.
Topics: Standard Costing
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