Chapter 10 : Standard Costing

1. Standard price of material per kg is Rs. 20, standard usage per unit of production is 5 kg. Actual usage of production 100 units is 520 kgs, all of which was purchase at the rate of Rs. 22 per kg. Material cost variance is
   (a) Rs. 2,440 (A)
   (b) Rs. 1,440 (A)
   (c) Rs. 1,440 (F)
   (d) Rs. 2,300 (F)
2. Standard cost of material for a given quantity of output is Rs.15,000 while the actual cost of material used is Rs.16,200. The material cost variance is:
   (a) Rs.1,200 (A)
   (b) Rs.16,200 (A)
   (c) Rs.15,000 (F)
   (d) Rs.31,200 (A)