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Variance

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0% found this document useful (0 votes)
24 views3 pages

Variance

Uploaded by

AnishKaria
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Material Variance

1. Material Price Variance (MPV)


(Standard Price – Actual Price) X Actual Quantity

2. Material Usage Variance (MUV)


(Standard Quantity – Actual Quantity) X Standard Price

3. Material Cost Variance


(Standard Cost – Actual Cost)
(Standard Quantity X Standard Price) – (Actual Quantity X Actual Price)

4. Material Yield Variance


(Actual Yield – Standard Yield) X Standard Material Cost Per Unit

Standard Material Cost Per Unit = Standard Cost of Standard Mix / Net Standard Output

5. Material Mix Variance


(Revised Standard Quantity – Actual Quantity) X Standard Price.
Sums on Material Variance

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.

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