Numerical on material cost variance

Q.  A standard cost card reveals that one unit of Product A needs 2 kg of material X at Rs 10 per kg. During February 800 units of Product A were produced. Actual price paid for material X is Rs 9 per kg and total cost Rs 15,300. Determine material cost variance.
- Published on 08 Sep 15

a. Rs 700 favorable
b. Rs 700 unfavorable
c. Inadequate data
d. None of the above

ANSWER: Rs 700 favorable

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