Rs. 20,000 Favourable Sales: Standard Quantity (SQ) Actual Quantity (AQ) Standard Price (SP) SQ x SP AQ X SP Calculation: 20,000 units 18,750 units = Rs. 72 20,000 x 72 = Rs. 14.40,000 18,750 x 72 = Rs. 13,50,000 Sales Volume Variance (SQ X SP) - (AQ X SP) Rs. 14.40,000 - Rs. 13,50,000 Rs. 90,000 Adverse p8 Total Standard Cost: Direct Material Direct Labour Variable Overhead Fixed Overhead = Standard Gross Margin (SGM) Standard Quantity (SQ) Actual Quantity (AQ) Standard Gross Margin (SGM) SQ X SGM AQ X SGM Calculation of GM Sales Volume Variance: GM Sales Volume Variance Rs. 9 (1.5 kg x Rs. 6) Rs. 30 (6hrs x Rs. 5) Rs. 24 (6 hrs x Rs. 4) Rs. 3 Rs. 66 Rs. 72 -Rs. 66 = Rs. 6 20,000 units 18,750 units Rs. 6 Rs. 1,20,000 Rs. 1,12,500 (SQ X SGM) - AQ X SGM) Rs. 1,20,000 - Rs. 1,12,500 = Rs. 7,500 Adverse. = A Company produces a finished product by using three basic raw materials. The following standards have been set up for raw materials: Material Standard Mix in Percentages Standard Price per kg. in Rs. A 25 4 35 40 2 The standard loss in process is 20% of input. During a particular month, the company produced 2,400 kgs of finished product. The details of stock and purchases for the month are as under: Standard Costing and Variance Analysis 629 Purchases during the month Materials Opening Stock Closing Stock (Kgs) Qty in Kgs. Cost in Rs. A 200 350 800 3,600 B 150 200 1,000 3.500 300 200 1,100 1,980 The opening stock is valued at standard cost. Compute : (1) Material Price and Material Cost Variances, When : (a) Variance is calculated at the point of issue of First In - First Out basis (FIFO). (b) Variance is calculated at the point of issue of Last In - First Out basis (LIFO). (ii) Material Usage Variance (iii) Material Mix Variance (iii) Material Yield Variance