AC 28 44 AR 342 48 65 56.30 160 58 Chemical SQ (kgs) SR SC AQ (kgs) 30 40 31,200 1,176 B 40 50 2,000 2,112 80 60 4,800 88 5,720 150 53.33 8,000 9,008 Material cost variance: (TSC-TAC) = (8,000 - 39,008) = 1,008 (adverse) 1. Material price variance: (SR - AR) X AQ A: 40 - 342) X 28 kgs = 356 (adverse) B: 50 - 348) X 44 kgs = 88 (favourable) C: (60 - 865) X 88 kgs = 440 (adverse) 408 (adverse) 2. Material mix variance: (RSQ - AQ) X SR A: 160 X 30/150 = (32 kgs - 28 kgs) x 340 = $160 (favourable) B: 160 X 40/150 = (42.67 kgs - 44 kgs) X 350 = 66.67 (adverse) C: 160 X 80/150 = (85.33 kgs - 88 kgs) *60 = 160 (adverse) 66.70 (adverse) 3. Material yield variance: Standard yield (SY) - Actual yield (AY) X SC per unit)=(106.667 100) X 80 = 3533.30 A Standard yield = Standard production expected from actual quantity used, that is, (160 kgs x 100)/150 kgs = 106.67 kgs SC per unit = Total standard cost/Total standard output = 38,000/100 kgs = 380 per kg Alternatively, material yield variance can be calculated on input basis also: (Total standard quality of raw material required to produce actual output - Actual quantity used for actual production) X Standard weighted average cost per kg = (150 kgs - 160 kgs) X 353.33 = 3533.30 (adverse). P.19.3 A foundry producing castings of a standard alloy uses standard costs. The standard mixture is as follows: 40 per cent material A at 33,000 per tonne 30 per cent material B at 1,000 per tonne 10 per cent material C at 34,200 per tonne 20 per cent scrap metal of this alloy. It is expected that from each charge, there will be a 5 per cent loss in melt, 35 per cent will be re- turned to scrap stock (runners, heads, etc.) and 60 per cent will be good castings. Scrap is credited and charged at the standard average cost of the metal mixture. Scrap is credited and charged at the standard average cost of the metal mixture. In a certain period, the following materials are purchased and used: 380 tonnes material A at 83,100 per tonne 330 tonnes material B at 1,100 per tonne 90 tonnes material Cat 34,200 per tonne 200 tonnes scrap metal at standard price. From this material, 608 tonnes of good castings are produced and 340 tonnes of scrap metal are returned to scrap metal stock. Prepare information for management showing standard metal costs, and variances from standard in respect of this period