Question
80 kg of material A at standard price of Rs 2 per kg and 40 kg of material B at standard price of Rs 5
80 kg of material A at standard price of Rs 2 per kg and 40 kg of material B at standard price of Rs 5 per kg were to be used to manufacture 100 kg of a chemical. During a month, 70 kg of material A priced at Rs 2.1 per kg and 50 kg of material B priced at Rs 4.5 per kg were actually used and the output of the chemical was 102 kg.
Find :
(a) Material cost variance
(b) Material price variance
(c) Material usage variance
(d) Material mixed variance
(e) Material yield variance
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