Question

a manufacturing concern which has adopted standerd costing furnishes the following information :
standerd : Material for 70kg of finished product 100kg
price of materials 1 Rs per kg
Actual: output 210000kg
material used 280000kg
cost of material Rs 252000
calculate
material usages variance
material price variance
material cost variance

Answer 1

Explanation:

The difference between the standard cost of direct materials specified for production and the actual cost of direct materials used in production is known as Direct Material Cost Variance. Material Cost Variance gives an idea of how much more or less cost has been incurred when compared with the standard cost.