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Problem 1: ABC co. has the following data: Standard batch level material costs of Rs. 12,000 for a batch of 100 units. Static budget was for 180 units. Actual was Rs. 11,000 for a production of 80 units. Calculate the static budget or planning variance. (Note: this is a batch level cost)
Option 1: Rs. 1,000 (unfavourable)
Option 2: Rs. 12,000 (Favourbale)
Option 3: Rs. 11,000 (Favourable)
Option 4: Rs. 1,000 (favourable)
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