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प्रश्न
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.
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उत्तर
| Expected Output (kgs.) | Input (kgs.) |
| 1,000 | 1,100 |
| 20,000 | 22,000 |
| Material | Standard | Actual | Standard Proportion of Actual Input (kgs.) | ||||
| Qty. | Rate | Total(Rs.) | Qty. | Rate | Total(Rs.) | ||
| A | 9,000 | 20 | 1,80,000 | 10,000 | 19 | 1,90,000 | 9,409 |
| B | 8,000 | 40 | 3,20,000 | 8,500 | 42 | 3,57,000 | 8,364 |
| C | 5,000 | 60 | 3,00,000 | 4,500 | 65 | 2,92,500 | 5,227 |
| 22,000 | 8,00,000 | 23,000 | 8,39,500 | 23,000 | |||
(1) Material Cost Variance (MCV): (SQ x SR)-(AQ x AR)
Material-A = 1,80,000 (-) 1,90,000 = Rs. 10,000 (A)
Material-B = 3,20,000 (-) 3,57,000 = Rs. 37,000 (A)
Material-C = 3,00,000 (-) 2,92,500 = Rs. 7,500 (F)
Rs. 39,500 (A)
(2) Material Price Variance (MPV) : (SR - AR) x AQ
Material - A = (20 - 19) x 10,000 = Rs. 10,000 (F)
Material- B = (40 - 42) x 8,500 = Rs. 17,000 (A)
Material - C = (60 - 65) x 4,500 = Rs. 22,500 (A)
Rs. 29,500 (A)
(3) Material Usage Variance (MUV): (SQ-AQ) x SR
Material - A = (9,000 - 10,000) x 20 = Rs. 20,000 (A)
Material - B = (8,000 - 8,500) x 40 = Rs. 20,000 (A)
Material - C = (5,000 - 4,500) x 60 = Rs. 30,000 (F)
Rs. 10,000 (A)
(4) Material Mix Variance (MMV) : SR x Difference in Mix
Material-A = 20 x (9,409 - 10,000) = Rs. 11,820 (A)
Material-B = 40 x (8,364 - 8,500) = Rs. 5,440 (A)
Material-C = 60 x (5,227 - 4,500) = Rs. 43,620 (F)
Rs. 26,360 (F)
(5) Material Yield Variance (MYV}: Std. Yield Rate (x) Difference in Yield
SYR `="Std. Cost"/"Actual Output"= (8,00,000)/(20,000)` = Rs. 40 x 909 kg = Rs. 36,360 (A)
| Difference in Yield : | Verification : |
| Actual Input = 23,000 kg | (1) MPV+ MUV = MCV |
| (-) Loss (9.09%) = 2,091 kg | ∴ 29,500 (A) + 10,000 (A)= 39,500 (A) |
| Expected Output = 20,909 kg | (2) MMV + MYV = MUV |
| Actual Output = 20,000 kg | ∴ 26,360 (F) + 36,360 (A) = 10,000 (A) |
| Difference in Yield = 909 kg |
