What is the direct material usage variance

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Question - The standard cost of direct material is £3 per kg and the standard quantity is 2 kg per unit of output. The actual cost is £3.10 per kg and the actual quantity used is 1.8 kg per unit. 10,000 units are produced in the period. What is the direct material usage variance?

(a) £1,800 adverse (b) £4,200 favourable (c) £6,000 favourable (d) £6,200 favourable

Reference no: EM132926411

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