Question 1.25 Mixers Ltd. is engaged in producing a standard mix using 60 kg of chemical X and 40 kg of
chemical Y. The standard loss of production is 30%. The standard price of X is Rs.5 per kg and of Y is Rs. 10
per kg. The actual mixture and yield were as follows:
X 80 kg ( Rs.4.50 per kg
Y - 70 kg @ Rs.8.00 per kg
Actual yield 115 kg.
Calculate all Material Variances Ans.
Answers
Answer:
For chemical X = Material cost variance = 60x5 - 80x4.5 = 990
- Material Price Variance = 80 (10 - 4.50) = 795.5
- Material Usage Variance = 10 (60 - 80) = 520
- Material Mix Variance = 80/60 X 5 - 4.50 = 2.16
- Material Yield Variance = 5 ( 115 - 34.5) = 540.5
For chemical Y = Material cost variance = 40x10 - 70x8 = 2640
- Material Price Variance = 70 (10 - 8) = 692
- Material Usage Variance = 10 (40 - 70) = 330
- Material Mix Variance = 70/40 X 10 - 8 = 9.5
- Material Yield Variance = 10 ( 115 - 34.5) = 1115.5
Explanation:
For more information, please refer to this image for better understanding
Answer:
Explanation:
1.SQ * SP 2. RSQ*SP 3.AQ*SP 4. AQ*AP
X= 98.6*5=493 90*5=450 80*5=400 80*4.5=360
Y=65.7*10=657 60*10=600 70*10=700 70*8=560
TOTAL =1150 TOTAL=1050 TOTAL=1100 TOTAL=920
- first we will find Material price variance as the data is given by using table 3 and 4-
MPV=1100-920=180(F)
- Now total Actual quantity is 150kg in which X has 80 kg and Y has 70 kg now we revised this quantity according to Standard quantity ratio
RQX=150*60/100=90kg
RQY=150*40/100=60kg Now we will put these in table 2 and with the help of table 2 and 3 we will find Material Mix Variance= 1050-1100=50(A)
- SQ quantity to produce 115kg which 70%and actual SQ is 115*100/70=164.28
- Now SQ OF X is 164.28*60/100=98.6
- Now SQ OF Y IS 164.28*40/100=65.7
- WITH TABLE 1 AND TABLE 2 we can find out Material Cost Variance = 1150-920=230(F)