Q952
Product A requires 10 kg of material at the rate of Rs. 5 per kg. The actual consumption of material for the manufacturing of product A comes to 12 kg of material at the rate of Rs. 6 per kg. Direct material cost variance is
A.
Rs. 22 (favourable)
B.
Rs. 22 (unfavourable)
AnswerC.
Rs. 12 (favourable)
D.
Rs. 12 (unfavourable)
Answer: Option B
Solution
Answer: Option B
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