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Question - Cadbury's has developed the following standards for one of its products:
Direct materials 12 kg × R14 per kg
The following activities occurred during the month of October:
Materials purchased 10,000 kg at R13.60 per kg
Materials used 9,000 kg
Units produced 800 units
The company records materials price variances at the time of purchase.
Required - Determine the material usage variance.
A. R5,600 unfavourable.
B. R8,400 unfavourable.
C. R8,400 favourable.
D. R5,600 favourable.
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