#### Related QuestionsVIEW ALL [8]

The following information is available from the books of a manufacturin company which uses three types of materials for production:

Material | Standard | Actual | ||||

Quantity (Kgs) | Price (Rs.) | Total (Rs.) | Quantity (Kgs) | Price (Rs.) | Total (Rs.) | |

X | 2,500 | 6.00 | 15,000 | 2,000 | 6.00 | 12,000 |

Y | 2,000 | 3.75 | 7,500 | 2,500 | 3.60 | 9,000 |

Z | 1,500 | 3.00 | 4,500 | 2,000 | 2.80 | 5,600 |

6,000 | 6,500 | (Actual loss) |
||||

Less: 10% Normal Loss |
600 | 1,100 | ||||

5,400 |
27,000 |
5,400 |
26,600 |

**Calculate:**

(a) Material Cost Variance,

(b) Material Price Variance,

( c) Material Usage Variance,

( d) Material Mix Variance,

( e) Material Yield Variance.

The standard material inputs required for 1,000 kg of a finished product are given below :

Material |
Quantity (kg.) |
Standard Rate per kg.(Rs.) |

A | 450 | 20 |

B | 400 | 40 |

C | 250 | 60 |

1,100 | ||

Less: Standard Loss |
100 | |

Standard Output | 1,000 |

Actual produption in a period was 20,000. kgs. of the finished product for which the actual quantities of material used and the prices thereof are as under :

Material |
Quantity used |
Actual Rate per kg. (Rs.) |

A | 10,000 | 19 |

B | 8,500 | 42 |

C | 4,500 | 65 |

**Calculate**:

(1) Material Cost Variance,

(2) Material Price Variance,

(3) Material Usage Variance,

(4) Material Mix Variance

(5) Material Yield Variance.

The standard mix of Product A2 is as follows :

Kgs. |
Material |
Price per Kg.(Rs.) |

45 | X | 6 = 00 |

25 | Y | 4 = 50 |

30 | Z | 9 = 50 |

The standard loss in production is 10% of input. There is no scrap value. Actual Production for a month was 7,425 kgs. of A2. Actual Purchases and Usage of Material during the month were :

Kgs. |
Material |
Price per Kg.(Rs.) |

4,200 | X | 6 = 00 |

1,700 | Y | 4 = 25 |

2,600 | Z | 9 = 75 |

**Calculate:**(a) Material Cost Variance,

(b) Material Price Variance,

(c) Material Usage Variance,

(d) Material Mix Variance,

(e) Material Yield Variance.

The Standard mix of a product is as follows :

Material |
Units |
Price per Unit (Rs.) |

A | 30 | 20 |

B | 20 | 15 |

C | 50 | 30 |

Standard Loss in Production - 10%

Actual Production - 8,000 units.

The actuaI purchases and consumption of materials during the month were:

Material |
Units |
Price per Unit (Rs.) |

A | 2,500 | 25 Ps. |

B | 1,600 | 10 Ps. |

C | 4,500 | 40 Ps. |

Compute the various 'Material Variances'.

The Standard specification for a batch of 500 kg of Output of a factory is as under (l).

In October 2017, the factory obtained a production of 9,750 kg. of output for which 20 batches constituting standard inputs of material were issued in the following ratio at the actual price indicated against each (II).

**(I)**

Material |
Input (Kgs.) |
Rate (Rs.) |

A | 250 | 4.00 |

B | 100 | 3.00 |

C | 200 | 2.00 |

D | 50 | 1.00 |

**(II)**

Material Issued |
Ratio (%) |
Actual Rate (Rs.) |

A | 250 | 4.00 |

B | 100 | 3.00 |

C | 200 | 2.00 |

D | 50 | 1.00 |

Calculate the various 'Material Variances' .

From the following information, compute:

(i) Material Cost Variance,

(ii) Material Price Variance,

(iii) Material Usage Variance,

(iv) Material Mix Variance.

Material |
Standard Mix |
Actual Mix |

X | 40 kg at Rs. 10 per kg | 20 kg at Rs. 35 per kg |

Y | 20 kg at Rs. 20 per kg | 10 kg at Rs. 20 per kg |

Z | 20 kg at Rs. 40 per kg | 30 kg at Rs. 30 per kg |