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Problem 1 : Material cost Variance The data of Mitsubishi manufacturing concern. The standard quantity of materials required for producing one ton of output is
Problem 1 : Material cost Variance The data of Mitsubishi manufacturing concern. The standard quantity of materials required for producing one ton of output is 40 units. The standard price per unit of materials is Br.3. During a particular period 90 tons of output was undertaken. The materials required for actual production were 4,000 units. An amount of Br. 14,000 was spent on purchasing the materials. REQUIRED: calculate (i) Materials Cost Variance, (ii) Material Price Variance, and (iii) Material Usage Variance
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