| 01. |
From the following information, calculate the variances:
| Material |
Standard |
|
Actual |
Usage
kg. |
Rate
per kg. |
Total
Rs. |
Usage
kg. |
Rate
per kg. |
Total
Rs. |
| P |
60 |
3 |
180 |
50 |
4 |
200 |
| Q |
40 |
7 |
280 |
35 |
6 |
210 |
| Gross Input |
100 |
|
460 |
85 |
|
410 |
| Less: Normal loss |
10 |
Less: Actual Loss |
7 |
|
| Output |
90 |
|
|
|
78 |
|
Solution
[TMCV = + Rs. 11.33 ; TMPV = − Rs. 15; TMUV/TMQV = + Rs. 3.67;
TMMV = − Rs. 4 ; TMYV/TMSUV = + Rs. 7.67;]
|
| 02. |
From the following information, calculate the variances:
| Material |
Standard |
| Actual |
| Tonnes |
Rate |
|
Tonnes |
Rate |
| P |
150 |
13 |
|
170 |
12 |
| Q |
80 |
8 |
|
55 |
9 |
| Gross Input |
250 |
|
|
225 |
|
| Less:Loss |
25 |
|
|
18 |
|
| Output |
225 |
|
|
207 |
|
Solution
[TMCV = − Rs. 152.20; TMPV = + Rs. 115; TMUV/TMQV = − Rs. 267.20;
TMMV = −Rs. 319 ;
TMYV/TMSUV = −Rs. 51.80;]
|
| 03. |
The following are the standard and actual cost details of a product:
| Material |
Standard |
|
Actual |
Quantity
kg. |
Rate
per kg. |
Amount
Rs. |
|
Quantity
kg. |
Rate
per kg. |
Amount
Rs. |
| F |
1,200 |
12 |
14,400 |
|
1,250 |
13 |
16,250 |
| G |
700 |
14 |
9,800 |
|
740 |
15 |
11,100 |
| H |
600 |
10 |
6,000 |
|
860 |
9 |
7,740 |
| Gross Input |
2,500 |
12.08 |
30,200 |
|
2,850 |
15.60 |
35,090 |
| Less:Wastage |
250 |
2 |
500 |
|
375 |
?? |
?? |
| Output |
2,250 |
13.20 |
29,700 |
|
2,475 |
?? |
?? |
Solution
[TMCV = − Rs. 1,870; TMPV = − Rs. 1,130;TMUV/TMQV = − Rs. 740;
TMMV = + Rs. 468;TMYV/TMSUV = −Rs. 1,208; ]
|
| 04. |
From the following calculate all possible material variances
| Material |
Standard Mix |
Actual Mix |
| Material A |
90 units costing Rs. 3,600 |
450 units costing Rs. 18,900 |
| Material B |
60 units costing Rs. 1,800 |
300 units costing Rs. 10,500 |
Standard Loss allowed is 10% of input and standard rate of scrap realisation is Rs. 6 per unit. Actual output is 648 units.
Solution
[TMCV = − Rs. 3,480; TMPV = − Rs. 2,400; TMUV/TMQV = − Rs. 1,080;
TMMV = Nil;TMYV/TMSUV = − Rs. 1,080; ]
|
| 05. |
The standard cost of a chemical mixture is as under
250 tons of material M @ Rs. 12,000 per ton
375 tons of material N @ Rs. 14,000 per ton
Standard yield is 80% of input.
Actual cost for a period is as under
255 tons of material M @ Rs. 11,000 per ton
370 tons of material N @ Rs. 15,000 per ton
Actual Yield is 525 tons
Compute Material Variances.
Solution
[TMCV = + Rs. 3,07,500; TMPV = − Rs. 1,15,000; TMUV/TMQV = + Rs. 4,22,500;
TMMV = + Rs. 10,000;
TMYV/TMSUV = + Rs. 4,12,500; ]
|
| 06. |
124 kgs of Material A at a standard price of Rs. 2 per kg. and 126 kgs of material B at a standard price of Rs. 6 per kg were to be used to manufacture 200 kgs of a chemical.
During a month, 170 kgs of Material A priced at Rs. 2.10 per kg and 150 kgs of Material B priced at Rs. 6.50 per kg were actually used and the output of the chemical was 242 kgs.
Find out the material variances.
Solution
[TMCV = − Rs. 117.16; TMPV = − Rs. 92; TMUV/TMQV = − Rs. 25.16;
TMMV = + Rs. 45.12 ;
TMYV/TMSUV = − Rs. 70.28; ]
|
| 07. |
The Standard cost of a certain chemical mixture is : 40% material A @ Rs. 2,500 per tonne;
60% material B @ Rs. 4,200 per tonne. A standard loss of 10% is expected in production. During a period of one month 190 tonnes of material A @ Rs. 2,400 per tonne and 310 tonnes of material B @ Rs. 4,350 per tonne were used to produce 414 tonnes of good production.
Calculate all possible material variances.
Solution
[TMCV = − Rs. 1,85,300; TMPV = − Rs. 27,500;TMUV/TMQV = − Rs. 1,57,800;
TMMV = − Rs. 17,000;
TMYV/TMSUV = − Rs. 1,40,800; ]
|
| 08. |
The standard cost of a certain chemical mixture is:
35% Material A at Rs. 105 per kg.
65% Material B at Rs. 136 per kg.
A standard loss of 5% is expected in production.
During a period there is used:
125 Kg of Material A at Rs. 127 per kg. and
275 kg. of Material B at Rs. 124 per kg.
The actual output was 342 kgs.
Calculate Material Variances.
Solution
[TMCV = − Rs. 4,921; TMPV = + Rs. 550; TMUV/TMQV = − Rs. 5,471;
TMMV = − Rs. 465 ;
TMYV/TMSUV = − Rs. 5,006;]
|
| 09. |
The standard mix of product is:
X = 75 units at 15 paise per unit
Y = 80 units at 20 paise per unit
Z = 125 units at 20 paise per unit
Ten units of finished product should be obtained from the above mix. During the month of February, ten mixes were completed and the consumption was:
X = 660 units at 20 paise per unit
Y = 975 units at 15 paise per unit
Z = 885 units at 30 paise per unit
Actual output was 85 units.
Calculate Material Variances.
Solution
[TMCV = − Rs. 99.63; TMPV = − Rs. 72.75; TMUV/TMQV = − Rs.26.88;
TMMV = − Rs. 0.75 ;
TMYV/TMSUV = − Rs.26.13;]
|
| 10. |
Standard Mix of Product YN is:
| lbs |
Materials |
Price per lb |
| 50 |
X |
Rs. 24 |
| 20 |
Y |
Rs. 20 |
| 30 |
Z |
Rs. 40 |
The standard loss in production is 10% of input. There is no scrap value. Actual production for a period was 7,290 lbs. of YN from 80 mixes. Actual purchases and consumption of material during the month were:
| lbs |
Materials |
Price per lb |
| 4,160 |
X |
Rs. 27.50 |
| 1,680 |
Y |
Rs 18.75 |
| 2,560 |
Z |
Rs. 42.50 |
You are required to calculate and present the following variances:
Solution
[TMCV = − Rs. 27,900; TMPV = − Rs. 18,860; TMUV/TMQV = − Rs. 9,040;
TMMV = − Rs. 640 ;
TMYV/TMSUV = − Rs. 8,400; ]
|
| 11. |
A company manufactures a particular product the standard direct materials cost of which is Rs.10 per unit. The following information is obtained from the costing records.
| Standard Mix |
|---|
| Material |
|
Quantity |
|
Rate |
|
Amount |
|
Units |
|
Rs/unit |
|
Rs |
| A |
|
70 |
|
10 |
|
700 |
| B |
|
30 |
|
15 |
|
450 |
| |
|
100 |
|
|
|
1,150 |
| Loss: (15%) |
|
15 |
|
– |
|
– |
| |
|
85 |
|
|
|
1,150 |
| Actual results for a period: |
|---|
| Material |
|
Quantity |
|
Rate |
|
Amount |
|
Units |
|
Rs/unit |
|
Rs |
| A |
|
400 |
|
11 |
|
4,400 |
| B |
|
200 |
|
16 |
|
3,200 |
| |
|
600 |
|
|
|
7,600 |
| Loss: (10%) |
|
60 |
|
|
|
|
| |
|
540 |
|
|
|
7,600 |
Compute all the material variances
Solution
[TMCV = − Rs. 294.12; TMPV = − Rs. 600; TMUV/TMQV = + Rs. 305.88;
TMMV = − Rs. 100 ;
TMYV/TMSUV = + Rs. 405.88; ]
|
| 12. |
The standard material inputs required for 1,000 kgs of a finished product are given below:
| Material |
|
Quantity
(in Kg.) |
|
Standard Rate per kg
(in Rs.) |
| P |
|
425 |
|
22 |
| Q |
|
450 |
|
44 |
| R |
|
225 |
|
56 |
| Gross Input |
|
1,100 |
|
|
| Less: Standard loss |
|
100 |
|
|
| Standard output |
|
1,000 |
|
|
Actual production in a period was 20,000 kgs. Of the finished product for which the actual quantities of material used and the prices paid thereof are as under:
| Material |
|
Quantity Used
(in Kg.) |
|
Purchase Price per kg
(in Rs.) |
| P |
|
9,700 |
|
19 |
| Q |
|
8,600 |
|
42 |
| R |
|
4,800 |
|
60 |
Calculate the material variances.
Solution
[TMCV = + Rs. 1500; TMPV = + Rs. 27,100; TMUV/TMQV = − Rs. 25,600;
TMMV = + Rs. 16,150 ;
TMYV/TMSUV = − Rs. 41,750; ]
|
| 13.
|
Gemini Chemical Industries provide the following information from their records:
For making 10 kgs. Of Gemco, the standard material requirement is:
| Material |
|
Quantity
Kgs. |
|
Rate per Kg.
Rs. |
| A |
|
8 |
|
8.00 |
| B |
|
4 |
|
3.00 |
During April 1988, 1,000 kgs. of Gemco were produced. The consumption of material is as under:
| Material |
|
Quantity
kgs. |
|
Rate per Kg.
Rs. |
| A |
|
750 |
|
7.50 |
| B |
|
510 |
|
3.00 |
Calculate all possible material variances
Solution
[TMCV = + Rs. 445; TMPV = + Rs. 375; TMUV/TMQV = + Rs. 70;
TMMV = + Rs. 450 ; TMYV/TMSUV = − Rs. 380; ]
|
| 14. |
A tonne of a particular standard of material 'M' is obtained from the following mixture.
330 kg. Material X @ Rs. 12 per kg.
275 kg. Material Y @ Rs. 8 per kg.
495 kg. Material Z @ Rs. 6 per kg.
During a month, 200 tonnes of material 'M' were produced by actually using:
70 tonnes Material X @ Rs. 11/- per kg.
62 tonnes Material Y @ Rs. 9/- per kg.
110 tonnes Material Z @ Rs. 6.40 per kg.
Calculate Material Variances.
How do the Yield, Mix and the Price factors contribute to the variation in the actual cost of chemical D over the standard cost?
Solution
[TMCV = − Rs. 2,06,000; TMPV = − Rs. 36,000; TMUV/TMQV = − Rs. 1,70,000;
TMMV = + Rs. 12,600 ;
TMYV/TMSUV = − Rs. 1,82,600; ]
|
| 15. |
S.V.Ltd. manufactures BXE by mixing three raw materials. For every batch of 100 kgs Of BXE, 125 kgs of raw materials are used. In February 2004, 56 batches were prepared to produce an output of 5,600 kg of BXE. The standard and actual particulars for February 2004 are as under:
Raw
Material |
|
Standard |
|
Actual |
|
Quantity of
Raw Materials
purchased
Kg. |
|
Mix
% |
|
Price
Per kg.
Rs. |
|
Mix
% |
|
Price
Per kg.
Rs. |
|
| A |
|
50 |
|
20 |
|
60 |
|
21 |
|
5,000 |
| B |
|
30 |
|
10 |
|
20 |
|
8 |
|
2,000 |
| C |
|
20 |
|
5 |
|
20 |
|
6 |
|
1,200 |
Calculate the material variances
Solution
[TMCV = − Rs. 9,600; TMPV = − Rs. 2,600; TMUV/TMQV = − Rs. 7,000;
TMMV = − Rs. 7,000;TMYV/TMSUV = Nil; ]
|
| 16. |
XYZ company manufactures a product ABC by mixing three raw materials. For every 100 kg. of ABC 125 kg.of raw materials are used in April 1990, there was an output of 5,600 kg. of ABC. The standard and actual particulars of April 1990 are as follows:
| Materials |
Standard |
Actual |
Mix
% |
Price
per kg.
Rs. |
Mix
% |
Price
per kg.
Rs. |
Raw Material I
Raw Material II
Raw Material III
|
50
30
20
|
40
20
10
|
60
20
20
|
42
16
12
|
Calculate all variances.
Solution
[TMCV = − Rs. 19,600; TMPV = − Rs. 5,600; TMUV/TMQV = − Rs. 14,000;
TMMV = − Rs. 14,000;TMYV/TMSUV = Nil; ]
|
| 17. |
X Y Ltd., manufactures of Product P, uses a standard cost system, Standard product and cost specifications for 1,000 kg. of product P are as follows:
| Ingredients |
|
Quantity
inKg. |
|
Price
per kg. |
|
Cost
Rs. |
| A |
|
800 |
|
2.50 |
|
2,000 |
| B |
|
200 |
|
4.00 |
|
800 |
| C |
|
200 |
|
1.00 |
|
200 |
| Input |
|
1,200 |
|
|
|
3,000 |
= Rs. 2.50 per kg.
|
| Output |
|
1,000 |
|
|
|
3,000 |
= Rs. 3.00 per kg.
|
Material records indicate:
| |
Consumption in January |
| A |
157,000 kg.@ Rs. 2.40 |
| B |
38,000 kg.@ Rs. 4.40 |
| C |
36,000 kg.@ Rs. 1.20 |
Actual finished production for the month of January is 200,000 kg
Solution
[TMCV = + Rs. 12,800; TMPV = − Rs. 6,700; TMUV/TMQV = + Rs. 19,500;
TMMV = − Rs. 3,000;
TMYV/TMSUV = + Rs. 22,500; ]
|
| 18. |
A factory is engaged in producing a product using two grades of materials A and B mixed in the ratio of 3:2. The standard price of material A is Rs. 4 per unit and that of B Rs. 3 per unit. Normal loss in production is expected at 10%. Due to shortage of materials it was not possible to use the standard mix. However, normal loss is still expected to be 10%. The actual results were as follows:
Material A 280 gms at Rs. 3.80
Material B 120 gms at Rs. 3.60 |
|
Actual production was 369 gms |
you are required to calculate all possible material variances.
Solution
[TMCV = − Rs. 20; TMPV = − Rs. 16; TMUV/TMQV = − Rs. 4;
TMMV = − Rs. 40;TMYV/TMSUV = + Rs. 36; ]
|
| 19. |
A particular alloy is produced by using two types of material viz. S and B in the ratio 2:1. During processing a loss of 5% occurs. Standard material prices are:
S - Rs. 1,800 per tonne
B - Rs. 1,200 per tonne
During a particular period, for an output of 500 tonnes of Alloy, the actual consumption was:
S - 350 tonnes @ Rs. 2,000 per tonne
B - 193 tonnes @ Rs. 1,100 per tonne
You are required to calculate all possible material variances.
Solution
[TMCV = − Rs. 70,194.73; TMPV = − Rs. 50,700; TMUV/TMQV = − Rs. 19,494.73;
TMMV = + Rs. 7,200;
TMYV/TMSUV = − Rs. 26,694.73; ]
|
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