Question
Illustration 10. Modern Tiles Ltd. makes plastic tiles of standard size of 6 x 6 1/8. From the information given ahead you are required
Illustration 10. Modern Tiles Ltd. makes plastic tiles of standard size of 6" x 6" 1/8". From the information given ahead you are required to calculate: (i) Total material cost variance; (ii) Material price variance; (iii) Material usage variance; (iv) Material mix variance; and (v) Material yield variance. A standard mix of the compound required to produce an output of 20,000 sq. ft. of tiles of 1/8" thickness is as follows: Direct Material A B C Quantity kg. 600 400 500 Price per kg. 9.00 6.50 4.00 For the month of March 2008, actual production of plastic tiles was 6,20,000 units. The actual data for direct material consumed was as under: Direct Material A B C Quantity Consumed kg. 5,000 2,900 4,400 Price per kg. { 8.50 6.00 4.50
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