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The standard material input required for 1,000 kgs. of a finished product are given below: Material Quantity (Kg) Standard Rate (per Kg) A 450 20
The standard material input required for 1,000 kgs. of a finished product are given below:
Material | Quantity (Kg) | Standard Rate (per Kg) |
A | 450 | 20 |
B | 400 | 40 |
C | 250 | 60 |
1100 | ||
Standard loss | 100 | |
Standard Output | 1000 |
Actual production in a period was 20,000 kg. of finished product for which the actual quantities of material used and the prices paid therefore were as under:
Material | Quantity (Kg) | Standard Rate (per Kg) |
A | 10000 | 19 |
B | 8500 | 42 |
C | 4500 | 65 |
Calculate (i) Material cost variance; (ii) Material price variance; (iii) Material usage variance; (iv) Material yield variance.
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