Question

If material cost variance is Rs. 10.000
(F) and material price variance is Rs.
15,000 (A), then material usage
variance is equal to (F = Favourable &
A = Adverse):​

Answer 1

Answer:

don't know answer

Step-by-step explanation:

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Answer 2

The material usage variance will be favourable

Given:

material cost variance = MCV = is Rs. 10.000 (F)

Material price variance = MPV =  is Rs. 15,000 (A)

To Find:

If MUV is favourable or unfavourable.

Solution:

MUV calculates the required quantity for an actual output at the standard price.

Since both MCV and MPV are given.

Using the formula to calculate MUV -

MUV = 15,000 + 10,000

MUv = 25000

It is positive because the actual cost is lower than the expected cost. The outcome is adverse if the real cost exceeds the standard cost (A).

Answer: It is favourable. 25000(F)

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