A furniture company uses premium wood for sofa. Standard quantity of premium wood per sofa is 5 sq. ft. Standard price per sq. ft. of premium wood…
CA Intermediate · Cost and Management Accounting · MTP · September 2024
A furniture company uses premium wood for sofa. Standard quantity of premium wood per sofa is 5 sq. ft. Standard price per sq. ft. of premium wood is 10. Actual production of sofa is 1,000. Premium wood actually used is 5,300 sq. ft. Actual purchase price of premium wood per sq. ft. is 10. What is material cost variance?
Suggested Answer and Working Notes:
Correct Answer: Option (A)
₹ 3,000 (A)
Topics: Standard Costing, Material Cost
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