Product AB has a standard cost of 32,6 of which relates to direct materials. Budgeted production for the month was 1600 units. During the month,…

CA Intermediate · Cost and Management Accounting · RTP · January 2026
Product AB has a standard cost of 32,6 of which relates to direct materials. Budgeted production for the month was 1600 units. During the month, 1500 units of AB were produced and materials worth - 9,000 were purchased. There was no opening stock of materials but closing stock, which was valued at standard cost, amounted to 1,500. What is the total variance for materials?
(A) ₹ 500 (F)
(B) ₹ 500 (A)
(C) ₹ 1500 (F)
(D) ₹ 1500 (A)

Suggested Answer and Working Notes:

Correct Answer: Option (C)

₹ 1500 (F)

Topics: Budgets and Budgetary Control

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