1. For making 20 kg. of MERGO, the standard material prerequisites is:

Material Quantity Rate per kg. ($)

A 8 kg 6.00

B 4 kg 4.00

During April, 1,000 kg of MERCO were created. The real utilization of materials is as under:

Material Quantity (Kg.) Rate per kg. ($)

A 750 7.00

B 500 5.00

Compute (A) Material Cost Variance; (b) Material Price Variance; (c) Material use Variance.

2. A organization has a typical limit of 120 machines, working 8 hours of the day for 25 days in a month. The fixed overheads are planned at $1,44,000 every month. The standard time needed to fabricate one unit of item is 4 hours.

In April, 2020, the organization worked 24 days of 840 machine hours out of every day and created 5,305 units of yield. The real fixed overheads were $1,42,000. Compute:

(i) Expense fluctuation

(ii) Volume fluctuation

(iii) Total fixed overheads fluctuation.