Task 1. Analyse the appropriateness of using standard costing as a tool for controlling cost in the context of a petrochemical company. Your analysis may also identify the advantages and disadvantages of it in relation to a chosen company

Task 2. Calculate Material price variance. Material usage variance and material cost variance from the following data. Analyse the probable reasons for adverse variances if any.

Standard

Material for 70 kgs of finished Goods: 100 kg

Price of material OMR 1 per kg

Actual

Output 210,000 Kg

Material used 280,000 kg

Cost of material OMR 252,000