Question
Economics Question on Estimation and Costing
AB Ltd uses the following standard mix for production of 'A' goods. 50 kgs. of material X at standard price ₹.20, 20 kgs of material Y at standard price ₹ 40. The Actual mix was:
60 kgs of material X
10 kgs. of material Y
what will be material mix variance ?
A
₹100 (Unfavorable)
B
₹400 (Favorable)
C
₹200 (Favorable)
D
₹150 (Unfavorable)
Answer
₹200 (Favorable)
Explanation
Solution
The correct answer is (C) : ₹200 (Favorable).