Question

5. If Material Cost Variance is
Rs.50,000 (F) and Material Price
Variance Is Rs.47,500 (A) then
Material Usage variance is: *
2500 F
2500 A
52500 F
97500 F​

Answer 1

Answer:

2500

b/c you are genious

Answer 2

Answer:

The correct answer is option A

Explanation:

Given: Material Cost Variance is Rs.50,000 (F) and Material Price

Variance Is Rs.47,500 (A)

To find: MUV

Solution:

$MCV=MPV +MUV$

Material cost variance has to be equal to the total of Material Price variance and Material Usage Variance

$50000=47500+MUV\\MUV=50000-47500\\=2500 F$