Numerical - Calculate material usage variance

Q.  The data related to Production of T are for material X standard data and actual data are 40 kgs @ Rs 10 and 55 kgs @ Rs 9, respectively. The standard data and actual data for material Y are 50 kgs @ Rs 5 and 35 kgs @ Rs 7. Determine material usage variance.
- Published on 11 Sep 15

a. Rs 75 favorable
b. Rs 75 unfavorable
c. Rs 90 unfavorable
d. Rs 90 favorable

ANSWER: Rs 75 unfavorable

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