Day: October 31, 2022

The shaded area in the diagram represents the standard material cost for a 2000 unit manufacturing run of Product X.

The larger box represents the total material cost.

Which statement is true?

Select ONE answer:

1. material price variance – Adverse & material usage variance – Adverse
2. material price variance – Adverse & material usage variance – Favourable
3. material price variance – Favourable & material usage variance – Adverse
4. material price variance – Favourable & material usage variance – Favourable

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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