a furniture company uses sunmica tops for tables. it provides the following data. standard quantity of sunmica per table =4 sq.ft., standard price per.sq.ft. of sunmica=₹5, actual production of table=1000,sunmica actually used=4300 sq.ft., actual purchase price of sunmica sq.ft.,=5.50., calculate ,MMV,MYV
Answers
Answer:
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Given:
a furniture company uses sun mica tops for tables. it provides the following data. standard quantity of sun mica per table =4 sq.ft., standard price per sq.ft of sun mica=₹5, the actual production of table=1000, sun mica actually used=4300 sq.ft., the actual purchase price of sun mica sq.ft.,=5.50
To Find:
Find the MMV and MYV
Solution:
The standard quantity for actual output (SQ) will be 4*1000=4000 sq. ft, the standard rate (SR) will be 5, the standard cost (SC) will be 20000, actual quantity (AQ) will be 4300, actual rate (AR) will be 5.5 and actual cost (AC) will be 23650.
Now using all these values to calculate the value of,
Material Price Variance=(SR-AR)*AQ
=(5-5.5)*4300
=2150(adverse)
Material Quantity Variance=(SQ-AQ)*SR
=(4000-4300)*5
=1500(adverse)
Material Cost Variance= SC-AC
=20000-23650
=3650(adverse)
Hence, the value of MPV, MQV, MCV is 2150,1500,3650 respectively in adverse.