Material A B Standard SQ (kgs) SR 900 520 800 40 500 60 2,200 36.30 200 (standard loss) 2,000 (standard output) 340 SC per unit SC 18.000 32,000 30.000 80,000 AQ (kgs) 1,000 850 450 2,300 Actual AR 19 42 65 36.5 AC 19.000 35,700 29,250 83,950 j59 1. Material cast variance: (SC - AC): 80,000 - 83,950) = 33,950 (adverse) 2. Material price variance: (SR - AR) X AQ Material A: 20 - 319) X 1,000 kgs = $1,000 (favourable) B: 40 - 342) X 850 kgs 1,700 (adverse) C: 60-365) X 450 kgs 2,250 (adverse) 2,950 (adverse) 3. Material mix variance: (RSQ - AQ) X SR Material A: (2,300 X 45) + 110) - 1,000 kgs x 20= 1,181.80 (adverse) B: (2,300 X 40) + 110) - 850 kgs x 40 - 545.50 (adverse) C: (2,300 X 25) + 110) 450 kgs x 260 - 4,363.60 (favourable) 2,636.30 (favourable) 4. Material yield variance: (SY - AY) X SC per kg = (2,300 X 100) + 110) - 2,000 units) x 340 - 33636.30 (adverse) 5. Material usage variance: (SQ-AQ) X SR Material A: (900 kgs - 1,000 kgs) X 20 - 2,000 (adverse) B: (800 kgs - 850 kgs) x 340 - 2,000 (adverse) C: (500 kgs - 450 kgs) X 860 - 3,000 (favourable) 1,000 (adverse) Alternatively, Material mix variance 82,636.30 (favourable) Plus, material yield variance 3,636,30 (adverse) 1,000 (adverse) P.19.5 From the data given below, calculate: (a) Individual material price variance for the two materials, X and Y, assuming that the variances are calculated at the time of purchase (b) Individual material usage variances for material X and Y assuming that there was no work-in- progress, either at the commencement or at the end of the period. Material X Material y Particulars Quantity (kg) Value Quantity (kg) Value Raw material purchases 2,000 40,000 5,000 262,500 Issued to work 2,150 3,950 Work stock of material Opening 300 1,000 Closing 200 1.250 Standard price Material X - 819 per kg Material Y - 13 per kg Standard usage: Material X Material y Product A 1 kg 1 kg Product B 0.5 kg 1 kg Output during the period Product A-1,130 units Product B-2,550 units