Standard Costing- Material Cost variance

Calculation of the actual output 1. Calculate the actual output produced for material cost variances in each of the alternative cases: a. Stock of finished goods opening 200kg, closing 100kgs Sales of finished goods 1750kgs b. Actual sales 1750kgs Opening WIP (materials fully supplied but 40% converted) Finished goods c. Actual no. of weeks- 4 Actual No. of working days per week- 6 Actual no. of workers-10 No. of working hrs. per day-8 Output per man hr in units -0.9 Calculation of Actual qty of material consumed and actual cost 2. X ltd. Operates standard costing system and has set Rs.4 as the standard price of its material. Following information is provided: Opening stock 35kgs, closing Stock 5kgs, Purchases 800kgs, Cost Rs.3400 Required to calculated actual qty of material consumed and actual cost of material consumed if the methods for issue of material is a) FIFO, b) LIFO 50kg 200kg Closing 100kg 100kgs

3. The Standard cost sheet per unit consist the following: Direct material A @ Rs. 4 per kg Direct Material B @Rs.3 per kg Actual output 170units Rs.16 Rs.18

Calculate the standard Qty of material for actual output and standard cost

4. Calculate the standard Qty of Material for actual output and standard cost from the following information: Material A B Standard Mix 40% 60% Standard Price per Kg Rs.4 Rs.3

The standard loss in processing 15% Actual output 1700kgs

5. Calculate the standard cost of actual qty of material consumed from the following Standard Material A Material B Output 800kgs @Rs.4 p/kg 1200kg @Rs.3p/kg 1700kgs Actual 830kgs for Rs.3600 1190kg forRs.3000

6. Calculate the revised qty for actual mix and standard cost thereof from the following information: Standard Material A Material B Processing Loss 15% Output 1700kg 40% 60% Rs.4 per kg Rs.3 per kg Actual 830kg @rs.3.90 per kg 1190@Rs.3.10 per kg

7. Calculate all cost variances from the following information provided Standard Actual

Material A Material B

60% 40%

Rs. 20per unit Rs.10 per unit

44kgs@ Rs.25 66kgs@ Rs.5

Standard processing Loss 10%

8. The standard material cost for a normal mix of one tone of chemical X is based on Chemical A B C Usage 240kg 400kg 640kg Price per kg 6 12 10

During the month, 6.25 tonnes of X was produced from Chemical A B C Consumption 1.6tonnes 2.4tonnes 4.5tonnes Cost Rs.11200 Rs.30000 Rs.47250

9. AB ltd., has established the following Standard Mix for producing a Gallon of Product A 5 gallon of X @Rs.7 per Gallon 3 Gallons of Y @Rs.5 per Gallon 2 Gallons of Z @ Rs.2 per Gallon A standard loss of 10% of input is expected to occur. Actual input was as under: 53000 gallons of X at Rs.7 per gallon 28000 gallons of Y @ Rs.5.30 per gallon 19000 gallons of Z @ rs.2.20 per gallon Actual output for a period was 92700 gallons of Product A

10. The standard material Cost for 100Kgs of chemical D is made up of: Chemical A Chemical B Chemical C 30 kgs@Rs.4 per kg 40 kgs @Rs5 per kg 80kgs @Rs.6 per kg

In Batch 500 kg of chemical D were produced from a mix of: Chemical A Chemical B Chemical C 140kgs for Rs.588 220kg for Rs.1056 440kgs for Rs.2860

How do the yield, mix and price factor contribute to the variance in actual cost per 100kg of chemical D over the standard cost