Guber Ltd. produces an article by blending two basic raw materials. It operates a standard-costing system and the following standards have been set for the raw materials:

Material Standard Mix Standard Price Per kg X 40% Rs. 8.00 Y 60% Rs. 6.00 The standard loss in processing is 15%.

During January 2010, the company produced 3,400 kgs of fi nished product (output). The position of stock and purchases for the month of January 2010 is as follows:

Material Stock on 1.1.2010 Stock on 31.1.2010 Purchased During January 2010

You are required to calculate the following:

(a) Material-price variance

(b) Material-usage variance

(c) Material-yield variance

(d) Material-mix variance

(e) Total material-cost variance

Transcribed Image Text:

kg kg kg Rs. X 70 10 1,600 13,600 Y 80 100 2,400 12,000