| 01. |
If the production of 200 litres of product MAGNA requires a standard mix of:
Material P 40 lbs @ Standard cost Rs. 12.50/lb,
Material Q 50 lbs @ Standard cost Rs. 15.00/lb,
Material R 75 lbs @ Standard cost Rs. 10.00/lb,
Find out the standard cost of this material mix.
Solution
[Rs. 2,000]
|
| 02. |
From the following information compute material variances
| Materials |
Standard |
Actual |
Quantity
(Kilos) |
Unit
Price
Rs. |
Total
Rs. |
Quantity
(Kilos) |
Unit
Price
Rs. |
Total
Rs. |
| 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 = + Rs. 40 ; TMPV = + Rs. 12; TMUV/MQV = + Rs. 28;
TMMV = − Rs. 8 ; TMYV/MSUV = + Rs. 36;]
|
| 03. |
From the data give below, calculate materials variances.
|
Consumption for 120 units of production |
| Raw Materials |
Standard |
Actual |
| A |
65 units @ Rs. 50 per unit |
80 units @ Rs. 50 per unit |
| B |
35 units @ Rs. 40 per unit |
40 units @ Rs. 45 per unit |
Solution
[TMCV = − Rs. 1,150 ; TMPV = − Rs. 200; TMUV/MQV = − Rs. 950;
TMMV = − Rs. 20 ;TMYV/MSUV = − Rs. 930; ]
|
| 04. |
Calculate from the following data: (a) Material Cost Variance; (b) Material Price Variance; (c) Material Usage Variance; (d) Material Mix variance and (e) Material Yield Variance.
| Material |
Standard Price |
Standard Weight
per unit of output |
Actual Weight
for output of
36 units |
Actual price
per lb |
| Rs. |
lbs |
lbs |
Rs. |
| A |
15 |
6 |
224 |
18 |
| B |
3 |
8 |
282 |
3 |
| C |
6 |
5 |
140 |
4 |
| |
|
19 |
646 |
|
Solution
[TMCV = − Rs. 254 ; TMPV = − Rs. 392; TMUV/MQV = + Rs. 138;
TMMV = − Rs. 150 ;TMYV/MSUV = + Rs. 288; ]
|
| 05. |
From the following details, calculate material variances
| |
Standard |
Actual |
| Production in units
| 2,000 |
1,800 |
| Materials per unit: |
|
|
| Max |
4 kg @ Rs. 12/kg |
5.6 kg. @ Rs. 14/kg |
| Dax |
2 Kg @ Rs. 6/kg |
2.8 kg. @ Rs. 5/kg |
Solution
[TMCV = − Rs. 58,320; TMPV = − Rs. 15,120; TMUV/MQV = − Rs. 43,200;
TMMV = Nil ; TMYV/MSUV = − Rs. 43,200;]
|
| 06. |
From the following figures given to you, calculate material variances. Production for the period 184 units:
| |
Material X |
Material Y |
| Standard Price Per Ton
| Rs. 240 |
Rs. 320 |
| Actual Price Paid per Ton |
Rs. 230 |
Rs. 308 |
| Actual Weights |
15 tons |
13 tons |
The standard production for the period represented by the above figures is 400 units for which the standard quantity allowance for material are 39 tons of X and 25 tons of Y.
Solution
[TMCV = + Rs. 531.60; TMPV = + Rs. 306; TMUV/MQV = + Rs. 225.60;
TMMV = − Rs. 165; TMYV/MSUV = + Rs. 390.60; ]
|
| 07. |
The standard quantity and standard price of raw material required for one unit of a product are given as follows:
| |
Quantity |
SP |
| Material I |
3 kg. |
Rs. 4 per kg. |
| Material II |
5 kg. |
Rs. 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
Rs.
|
| I |
1,600 kg. |
6,880 |
| II |
2,400 kg. |
7,440 |
Caluculate variances.
Solution
[TMCV = − Rs. 820; TMPV = − Rs. 720; TMUV/MQV = − Rs. 100;
TMMV = Nil ;TMYV/MSUV = − Rs. 43,200;]
|
| 08. |
ABC Ltd. uses the following standard and actual mix of their compound in one batch of its production line:
| Materials |
Standard mix
(kg) |
Standard rate
(Rs. 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 sub-variance (MMSV)
Solution
[TMCV = – TMPV = – TMUV/MQV = –
TMMV = − Rs. 736; TMYV/MSUV = –]
|
| 09. |
Saw Pipes Ltd manufactures a product known as the M 100 by mixing two materials. The standard material cost per unit of the M 100 is as follows.
| Rs. |
| Material P |
12 lts @ Rs. 12.50/ltr |
150 |
| Material Q |
18 lts @ Rs. 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 = − Rs. 510;
TMMV = + Rs. 246; ; TMYV/MSUV = − Rs. 756;]
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