Problem:
The standard material inputs required for 1, 000 kg of a finished output are given below.
|
Material in kg
|
Quantity [Rs.]
|
Standard Rate Per Kg & Rs.
|
|
P
|
450
|
20
|
|
Q
|
400
|
40
|
|
R
|
250
|
60
|
|
Total Input
|
1100
|
|
|
Less: Standard Loss
|
100
|
|
|
Standard Output
|
1000
|
|
Actual production in a period was 20, 000 kg of the finished product for which the actual quantities of materials used and the prices paid thereof are as under.
|
Material
|
Quantity Used - Kg
|
Purchased Price Per Unit
[Rs]
|
|
P
|
10, 000
|
19
|
|
Q
|
8, 500
|
42
|
|
R
|
4, 500
|
65
|
Calculate Material Cost, Price, Quantity, Mix and Yield Variances. Prepare reconciliation among the Variances