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प्रश्न
The standard cost of a certain chemical mixture is :
35% Material 'A' at Rs. 25 per kg.
65% Material 'B' at Rs. 36 per kg.
A standard loss of 5% is expected in production.
During a period, the actual use was :
125 kg of Material 'A' at Rs. 27 per kg.
275 kg of Material 'B' at Rs. 34 per kg.
The Actual Output was 365 kg.
Calculate:
(a) Material Cost Variance (b) Material Price Variance
(c) Material Usage Variance (d) Material Mix Variance
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उत्तर
Actual output = 365 kg
Standard Loss = 5%
It means,
| Expected Output (Kgs) | Input (Kgs) | |
| 95 | → | 100 |
| 365 | → | ? |
`(365xx100)/95` = 384 Kgs.
From the above Information, we can prepare Table in the following manner.
| Materials | Standard | Actual | Standard Proportion of Actual Input (Kgs.) | ||||
| Kgs. | Price (Rs.) | Total (Rs.) | Kgs. | Price (Rs.) | Total (Rs.) | ||
| A | 134 | 25 | 3,350 | 125 | 27 | 3,375 | 140 |
| B | 250 | 36 | 9000 | 275 | 34 | 9,350 | 260 |
| 384 | 12,350 | 400 | 12,725 | 400 | |||
(a) Material Cost Variance = (SQ x SP) - (AQ x AP)
Material A = (134 x 25)- (125 x 27)
= 3,350 - 3,375 = Rs. 25 (A)
Material B = (250 x 36) - (275 x 34)
= 9,000 - 9,350 = Rs. 350 (A)
Rs. 375 (A)
(b) Material Price Variance - (SP - AP) x AQ
Material A = (25 - 27) x 125 = Rs. 250 (A)
Material B = (36 - 34) x 275 = Rs. 550 (F)
=Rs. 300 (F)
(c) Material Usage Variance - (SQ - AQ) x SR
Material A = (134 -125) x 25 = Rs. 225 (F)
Material B = (250 - 275) x 36 = Rs. 900 (A)
Rs. 675 (A)
Verification = MPV+ MUV = MCV
∴ Rs. 300 (F) + Rs. 675 (A) = MCV
∴ Rs. 375 (A) = Rs. 375 (A)
(d) Material Mix Variance = SP x Difference in Mix
Material A = 25 x (140 - 125)
= Rs. 375 (F)
Material B = 36 x (260 - 275)
= Rs. 540 (A)
