Compute the missing data indicated by the Question Marks from the following:

Particulars	A	B
Standard Price/Unit	12	15
Actual Price/Unit	15	20
Standard Input (kgs)	50	?
Actual Input (kgs.)	?	70
Material Price Variance	?	?
Material Usage Variance	?	300 Adverse
Material Cost Variance	?	?

Material mix variance for both products together was 45 adverse.

Solution

Compute the missing data indicated by the Question Marks from the following:

Particulars	A	B
Standard Price/Unit	12	15
Actual Price/Unit	15	20
Standard Input (kgs)	50	50
Actual Input (kgs.)	?	70
Material Price Variance	?	?
Material Usage Variance	?	300 Adverse
Material Cost Variance	?	?

Material mix variance for both products together was 45 adverse.

Solution

One kilogram of product 'K" requires two chemicals A and B. The following were the details of product 'K' for the month of June, 1987:
(a) Standard mix Chemical 'A' 50% and Chemical 'B' 50%.
(b) Standard price per kilogram of Chemical 'A' 12 and Chemical 'B' 15/-.
(c) Actual input of Chemical 'B' 70 kilograms
(d) Actual price per kilogram of Chemical 'A' 15
(e) Standard normal loss 10% of total input
(f) Material cost variance total 650 adverse
(g) Materials yield variance total 135 adverse
You are required to calculate:
1. Materials mix variance total
2. Materials usage variance total
3. Materials price variance total
4. Actual loss of actual input
5. Actual input of Chemical'A'
6. Actual price per kilogram of Chemical 'B'.

Solution