Question:
1.Calculate Material Variances from the following details. Standard quantity of materials for producing 1 unit of finished product ‘P' is 5 kg.
The standard price is Rs.6 per kg. During a particular period, 500 units of ‘P' were produced. Actual material consumed was 2700 kg at a cost of Rs.16, 200.
2.The standard material cost to produce a ton of chemical X is given below:
300 kg of material A @ Rs.10 per kg
400 kg of material B @ Rs.5 per kg
500 kg of material C @ Rs.6 per kg
During a particular period, 100 tons of mixture X was produced from the usage of
35 tons of material A @ Rs.9, 000 per ton
42 tons of material B @ Rs.6, 000 per ton
53 tons of material C @ Rs.7, 000 per ton
Calculate material cost, price, and usage and mix variances.