Determine the material usage variance

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Reference no: EM133171022

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.

Reference no: EM133171022

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