Q. In a manufacturing firm, the standard quantity of material was set at 10 kg and standard price was fixed at Rs. 2 per kg. The actual quantity consumed was 12 kg and the actual price paid was Rs 1.90 per kg. Determine material usage variance. (Solved)

1. Rs 4 favorable

2. Rs 4 unfavorable

3. Rs 2.80 unfavorable

4. Rs 1.20 favorable

  • b. Rs 4 unfavorable
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