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