Two or More Materials :: Material Variances : Problems and Solutions
Problem 1
Material P 40 lbs @ Standard cost 12.50/lb,
Material Q 50 lbs @ Standard cost 15.00/lb,
Material R 75 lbs @ Standard cost 10.00/lb,
Find out the standard cost of this material mix.
Solution
[ 2,000]
Problem 2
Materials  Standard  Actual  
Quantity (Kilos)  Unit Price  Total  Quantity (Kilos)  Unit Price  Total  
Material X  15  2.00  30.00  10  3.00  30.00 
Material Y  20  3.00  60.00  16  2.50  40.00 
Material Z  15  6.00  90.00  14  5.00  70.00 
Total  50  3.60  180.00  40  3.50  140.00 
Solution
[TMCV = + 40 ; TMPV = + 12; TMUV/MQV = + 28; TMMV = − 8 ; TMYV/MSUV = + 36;]
Problem 3
Consumption for 120 units of production  

Raw Materials  Standard  Actual 
A  65 units @ 50 per unit  80 units @ 50 per unit 
B  35 units @ 40 per unit  40 units @ 45 per unit 
Solution
[TMCV = − 1,150 ; TMPV = − 200; TMUV/MQV = − 950; TMMV = − 20 ;TMYV/MSUV = − 930; ]
Problem 4
Material  Standard Price  Standard Weight per unit of output  Actual Weight for output of 36 units  Actual price per lb 

lbs  lbs  
A  15  6  224  18 
B  3  8  282  3 
C  6  5  140  4 
19  646 
Solution
[TMCV = − 254 ; TMPV = − 392; TMUV/MQV = + 138; TMMV = − 150 ;TMYV/MSUV = + 288; ]
Problem 5
Standard  Actual  

Production in units  2,000  1,800 
Materials per unit:  
Max  4 kg @ 12/kg  5.6 kg. @ 14/kg 
Dax  2 Kg @ 6/kg  2.8 kg. @ 5/kg 
Solution
[TMCV = − 58,320; TMPV = − 15,120; TMUV/MQV = − 43,200; TMMV = Nil ; TMYV/MSUV = − 43,200;]
Problem 6
Material X  Material Y  

Standard Price Per Ton  240  320 
Actual Price Paid per Ton  230  308 
Actual Weights  15 tons  13 tons 
Solution
[TMCV = + 531.60; TMPV = + 306; TMUV/MQV = + 225.60;
TMMV = − 165; TMYV/MSUV = + 390.60; ]
Problem 7
Quantity  SP  

Material I  3 kg.  4 per kg.  
Material II  5 kg.  3 per kg.  
Total 

The actual production and relevant data are as follows:
Output 500 units of the Product
Material  Total Quantity for 500 units  Total cost 

I  1,600 kg.  6,880 
II  2,400 kg.  7,440 
Caluculate variances.
Solution
[TMCV = − 820; TMPV = − 720; TMUV/MQV = − 100; TMMV = Nil ;TMYV/MSUV = − 43,200;]
Problem 8
Materials  Standard mix (kg)  Standard rate ( per kg)  Actual Mix (kg) 

P  50  2.00  460 
Q  30  3.00  540 
R  20  4.00  710 
Total  100  1,710 
Calculate Material mix subvariance (MMSV)
Solution
[TMCV = – TMPV = – TMUV/MQV = – TMMV = − 736; TMYV/MSUV = –]
Problem 9
Material P  12 lts @ 12.50/ltr  150 
Material Q  18 lts @ 15.00/ltr  270 
In March, the actual mix used was 984 litres of P and 1230 litres of Q. The actual output was 72 units of M 100.
Calculate all possible Material Variances
Solution
[TMCV = – TMPV = – TMUV/MQV = − 510; TMMV = + 246; ; TMYV/MSUV = − 756;]