Q. In August actual material used amounted to 5,650 kg, budgeted output was 1,000 units and standard material usage was 5 kg per unit. Actual output was 1,075 units. If the standard material cost of each product is 25 the material efficiency variance will be: (Solved)

1. 3,250 favourable

2. 1,375 favourable

3. 3,250 adverse

4. 1,375 adverse

  • c. 3,250 adverse
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