Two or More Materials :: Miscllaneous Advanced : Problems and Solutions
You are required:
To compute what should be the ratio of mix of the raw materials X and Z.
2,000 kg of material A at 1.00/kg
800 kg of material B at 1,50/kg
20 gallons of material C at 30/gallon.
During the period, 1505 standard size rolls were produced from the material issued of 150 batches. The actual usage and the cost of materials were:
3,00,500 kg of material A at 1.10/kg
1,19,600 kg of material B at 1.65/kg
3,100 gallon of material C at 29.50 gallon
Present the figures to management showing the break up of material cost variances arising during the period.
1,200 kg. Material A @ 0.30 per kg
500 kg. Material B @ 0.60 per kg
800 kg. Material C @ 0.70 per kg
The compound should produce 12,000 square feet of tiles of ½'' thickness. During a period in which 1,00,000 tiles of the standard size were produced, the material usage was:
|7,000||Material A @ 0.32 per kg.||= 2,240|
|3,000||Material B @ 0.65 per kg.||= 1,950|
|5,000||Material C @ 0.75 per kg.||= 3,750|
(i) cost variance in total:
(ii) cost variance sub-divided into (a) price and (b) usage
(iii) the usage variance analysed to show: (a) mix and (b) yield
A standard mix of the compound required to produce an output of 20,000 square feet of tiles 1/8" thick is as below:
|Direct Material||Quantity (kg)||Price ( per kg.)|
|Direct Material||Quantity (kg)||Price ( per kg)|
40% of material of A @ 300 per tonne
30% of material of B @ 100 per tonne
10% of material of C @ 420 per tonne
20% scrap metal of this alloy.
It is expected that from each charge, there will be 5% loss in melt, 35% will be returned to scrap stock (runners and headers etc.) and 60% will be good casting. Scrap is credited and charged at the standard average cost of the metal mixture. In a certain period, the following materials are purchased and used;
380 tonnes material A @ 310 per tonne
330 tonnes material B @ 110 per tonne
90 tonnes material C @ 420 per tonne
200 tonnes scrap metal at standard price
From this material, 608 tonnes of goods casting are produced and 340 tonnes of scrap metal are returned to the scrap metal stock
Prepare information for management showing standard metal cost, and variances from standard in respect of this period.