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प्रश्न
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.
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उत्तर
| Expected Output (Kgs.) | Input (Kgs.) |
| 90 | 100 |
| 7,425 | 8,250 |
| Material | Standard | Actual | Standard Proportion of Actual input (Kgs.) | ||||
| Qty. | Rate (Rs.) | Total (Rs.) | Qty. | Rate (Rs.) | Total (Rs.) | ||
| X | 3,713 | 6.oo | 22,278 | 4,200 | 6.50 | 27,300 | 3,825 |
| Y | 2,063 | 4.60 | 9,284 | 1,700 | 4.25 | 7,225 | 2,125 |
| Z | 2,474 | 9.50 | 23,503 | 2,600 | 9.75 | 25,350 | 2,550 |
| 8,250 | 55,065 | 8,500 | 59,875 | 8,500 | |||
(a) Material Cost Variance (MCV): (SQ x SR)-(AQ x AR)
Material - X = 22,278 - 27,300 = Rs. 5,022 (A)
Material - Y = 9,284 - 7,225 = Rs. 2,059 (F)
Material - Z = 23,503 - 25,350 = Rs. 1,847 (A)
Rs. 4,810 (A)
(b) Material Price Variance (MPV) : (SR - AR) x AQ
Material-X = (6.00 - 6.50) x 4,200 = Rs. 2,100 (A)
Material-Y = (4.50 - 4.25) x 1,700 = Rs. 425 (F)
Material-Z = (9.50 - 9.75) x 2,600 = Rs. 650 {A}
Rs. 2,325 (A)
(c) Material Usage Variance (MUV) : (SQ - AQ) x SR
Matetial-X =(3,713 - 4,200) x 6.00 = Rs. 2,922 (A)
Material-Y =(2,063 - 1,700) x 4.50 = Rs. 1,634 (F)
Material-Z =(2,474 - 2,600) x 9.50 = Rs. 1,197 (A)
Rs. 2,485 (A)
(d) Material Mix Variance (MMV) : SR x Difference in Mix
Material-X = 6.00 x (3,825 - 4,200) = Rs. 2,250 (A)
Material-Y = 4.50 x (2,125 - 1,700) = Rs. 1,912.50 (F)
Material-Z = 9.50 x (2,550 - 2,600) = Rs. 475 (A)
Rs. 812.50 (A)
(e) Material Yield Variance (MYV): Std. Yield Rate (x) Difference in Yield
7.42 x 225 = Rs. 1,670 (A)
Std. Yield Rate = `"Std. Cost"/"Actual Output"`
`=(55,065)/(7,425)= 7.42`
Difference in Yield:
Actual Input = 8,500 Kg
(-) Loss (10%) = 850 Kg
Expected Output 7,650 Kg
(-) ActuaI Output 7,425 Kg
225 Kg
