# Problem 1

In manufacturing a product GERBER, the standard quantity of material was fixed at 10 kg and the standard price was 200 per kg. The actual quantity consumed was 12 kg and the actual price was 190 per kg. Calculate all possible Material variances.

Solution Ans:
1
MYV/MSUV
MMV
− 400
0
MQV/MUV
MPV
− 400
+ 120
MCV − 280

# Problem 2

Mankad Sons manufacture a product PRICEY. It is estimated that for each ton of material consumed 80 articles should be produced. The standard price per ton of material 12,300. During the first week of January, 120 tons of materials were issued for production, the price of which was 12,960 per ton. Production during the week was 9,240 articles. Compute the variances.

Solution Ans:
1
MYV/MSUV
MMV
− 55,350
0
MQV/MUV
MPV
− 55,350
− 79,200
MCV − 1,34,550

# Problem 3

A furniture manufacturer uses Sunmica tops for tables. From the following information, find out Price variance, Usage variance and Joint variance.

 Standard Quantity of Sunmica per table 4 sq. ft. Standard price per sq. ft. of Sunmica 5.00. Actual production of tables 1,000 Sunmica actually used 4,300 sq.ft. Actual purchase price of Sunmica per sq. ft. 5.50

Who is responsible for the above variances?

Solution Ans:
1
MYV/MSUV
MMV
− 1,500
0
MQV/MUV
MPV
− 1,500
− 2,150
MCV − 3,650

# Problem 4

 Standard Price of material 5 per lb Standard Quantity 10 lbs of material per unit of output Standard Production: 100 units Actual Production: 90 units Actual Material Used: 1,180 lbs

Find Material Variances.

Solution Ans:
1
MYV/MSUV
MMV
− 1,400
0
MQV/MUV − 1,400

# Problem 5

The standard material required to manufacture one unit of product A is 10 kg and the standard price per kg is 3.00. In the month of March, 300 units of product A were produced by using 3,300 kg of material at a cost of 10,230.

Calculate variances.

Solution Ans:
1
MYV/MSUV
MMV
− 900
0
MQV/MUV
MPV
− 900
− 330
MCV − 1,230

# Practice Problem 1

The standard cost of material for the making of 5 units of a certain product is estimated as under:

Material 80 kg. @ 1.50 per kg. On completion of the production of 5 units, it was found that 72 kg. of material costing 1.75 per kg. has been consumed.

You are required to analyse the following material variances:

 (a) Material cost variance, (b) Material price variance, and (c) Material usage variance.
Solution Ans:
1
MYV/MSUV
MMV
+ 12
0
MQV/MUV
MPV
+ 12
− 18
MCV − 6

# Practice Problem 2

The standard cost card of a manufacturer shows the following details relating to the materials:

Standard Price = 2 per unit

Standard quantity = 4,000 units

Actual price = 2.50 per unit.

Actual usage of materials = 4,100 units.

Calculate Material Variances.

Solution Ans:
1
MYV/MSUV
MMV
− 200
0
MQV/MUV
MPV
− 200
− 2,050
MCV − 2,250

# Practice Problem 3

You have gathered the following information in respect of a product Y:

 Standard output 1,250 units Actual output 1,000 units Standard quantity for Standard output 1,250 kg. Actual quantity used 1,100 kg. Standard price 7.00 per kg. Actual price 7.50 per kg.

Calculate Material Variances.

Solution Ans:
1
MYV/MSUV
MMV
− 700
0
MQV/MUV
MPV
− 700
− 550
MCV − 1,250

# Practice Problem 4

Calculate the Material Variances from the given information.

Particulars Standard Actual
Material quantity per unit (Kgs) 2.00 2.20
Price per kg 14.00 15.00
Actual production or output (in units) 100
Solution Ans:
1
MYV/MSUV
MMV
− 280
0
MQV/MUV
MPV
− 280
− 220
MCV − 500

# Practice Problem 5

 Standard output 600 units Actual output 540 units Standard quantity per unit 1 kg Total actual quantity used 600 kg. Standard rate 14 per kg Actual rate 15 per kg

Calculate the material price variance, the materials usage variance, material cost variance, materials mixture variance and the material yield variance.

Solution Ans:
1
MYV/MSUV
MMV
− 840
0
MQV/MUV
MPV
− 840
− 600
MCV − 1,440