Variance
Variance
Standard Material Cost Per Unit = Standard Cost of Standard Mix / Net Standard Output
Question No. 1
ABC ltd. provides following information
Standard Price: Rs. 10/- Standard Quantity: 20 kgs
Actual Price: Rs. 9/- Actual Quantity: 22 kgs
You are required to calculate
Material Price Variance, Material Usage Variance and Material Cost Variance
Question No. 2
PQR ltd. provides manufactures 100 units of Product “X”
Standard Price: Rs. 10/- Standard Quantity: 20 kgs per unit
Actual Price: Rs. 9/- Actual Quantity: 22 kgs per unit
You are required to calculate
Material Price Variance, Material Usage Variance and Material Cost Variance
Question No. 3
Calculate Material Variances for an output of 80 units from the following information given
Standard Quantity: 3 kgs per unit of output Actual Quantity Consumed: 2 kgs per unit
Standard Price: Rs. 4/- per kg Actual Price: Rs. 6/- per kg
Question No. 4
Calculate Material Variances for an output of 80 units from the following information given
Standard Quantity: 3 kgs per unit of output Actual Quantity Consumed: 160 kgs
Standard Price: Rs. 4/- per kg Actual Price: Rs. 6/- per kg
Question No. 5
Calculate Material Variances from the following information
Standard Actual
Material
Qty. (kg) Price (Rs.) Qty. (kg) Price (Rs.)
X 60 15 55 18
Y 40 12 45 10
Question No. 6
The standard cost shows the following data related to materials need to produce 1 kg of
Product “Y”
Quantity of Material Required : 3 kg
Price of Material : Rs. 2.5/- per kg
Actual Production : 100 kg of Product “Y”
Actual Quantity of Material Used : 3,500 kg
Price of Material : Rs. 3/- per kg
Calculate: Material Price Variance, Material Usage Variance and Material Cost Variance
Question No. 7
The following information is provided by the company
Standard Actual
Material
Qty. (kg) Price (Rs.) Value (Rs.) Qty. (kg) Price (Rs.) Value (Rs.)
X 60 10 600 55 12 660
Y 40 12 480 45 10 540
Output 90 kg 1080 80 kg 1200
Calculate: Material Price Variance, Material Usage Variance, Material Cost Variance and
Material Yield Variance.
Question No. 8
The following information is provided by the company
Standard Actual
Material
Qty. (kg) Price (Rs.) Value (Rs.) Qty. (kg) Price (Rs.) Value (Rs.)
X 60 10 600 55 12 660
Y 40 12 480 45 10 540
Gross
100 kg 100 kg
Output
Loss 10 kg 20 kg
Net
90 kg 1080 80 kg 1200
Output
Calculate: Material Price Variance, Material Usage Variance, Material Cost Variance and
Material Yield Variance.