STANDARD COSTING

Total material cost variance = Standard cost actual cost

Material quantity variance = (std qty actual qty) X std price Material price variance = (std price actual price) X Actual qty

MATERIAL COST VARIANCE

QUANTITY VARIANCE

PRICE VARIANCE

Mix variance = Std rate X (actual qty revised std qty)

1. The standard cost of one of the products of the company shows the following standards: Material Quantity std price per kg Total (Rs. A 40kg 75 3000 B 10kg 50 500 C 50kg 20 1000 the standard input mix is 100kg and the standard output of the finished product is 90 kg. The actual results for the period are material used: A 2,40,000 kg @ Rs.80/kg B 40,000 kg @ Rs.52/kg C 2,20,000 kg @ Rs.21/kg The actual output of the finished product is 4,20,000 kg. You are required to calculate material variances.

The standard cost for product Simco reveals: The standard materials 2kg of A Rs. 2 per kg 4 1kg of B Rs.6 per kg 6 direct labour (3hrs @ Rs.6 per hour) 18 it has produced 9,000 units of simco in the month of april 2008 the actual results are Material A 19,000 kg @ Rs.2.20 per kg 41,800 Material B 10,100 kg @ Rs.5.60 per kg 56,560 Direct labour (28,500 hrs @ Rs.6.40 per hour) 1,82,400 Calculate material and labour variances.

1. The standard material cost to produce a tonne of chemical X is : 300 kg of material A @ Rs.10 per kg 400 kg of material B @ Rs.5 per kg 500 kg of material C @ Rs.6 per kg during a period 100 tonnes of mixture X was produced from the usage of 35 tonnes of material A at a cost of Rs.9000 per tonne 42 tonnes of material B at a cost of Rs.6000 per tonne 53 tonnes of material C at a cost of Rs.7000 per tonne calculate material variances

Total labour cost variance = Standard cost actual cost Labour efficiency variance = (std hours actual hours) X std rate

Labour rate variance = (std rate actual rate )X Actual hours

The details regarding composition & the wage rate are as follows: To produce 5 kgs of product A it requires 8 labour hours @ Rs.6 per hour. In the month of december 10,000 kgs of product A were produced. The total labour hours are 15500 @ 7 per hour. Calculate labour variances?

The standard cost for product Simco reveals: The standard materials 2kg of A Rs. 2 per kg 4 1kg of B Rs.6 per kg 6 direct labour (3hrs @ Rs.6 per hour) 18 it has produced 9,000 units of simco in the month of april 2008 the actual results are Material A 19,000 kg @ Rs.2.20 per kg 41,800 Material B 10,100 kg @ Rs.5.60 per kg 56,560 Direct labour (28,500 hrs @ Rs.6.40 per hour) 1,82,400 Calculate material and labour variances.

Calculate sales variances

Standard Actual Qty Rate Total Qty Product X 500 50 25000 500 Product Y 400 60 24000 600 Product Z 300 70 21000 400
Rate 50 62.50 67.50 Total 25000 37500 27000

The following standards have been set to manufacture a product: Direct material 2 units of A at Rs. 4 per unit 8 3 units of B at Rs.3 per unit 9 15 units of C at Rs.1 per unit 15 direct labour 3 hrs @ Rs.8 per hour 24 total standard prime cost 56 the company manufactured and sold 6000 units of the product during the year. The direct material costs were as follows: 12,500 units of A at Rs.4.40 per unit 18,000 units of B at Rs.2.80 per unit 88,500 units of C at Rs.1.20 per unit the company worked 17500 direct labour hours during the year. For 2500 of these hours the company paid at Rs.12 per hour while for the remaining the wages were paid at the standard rate. Calculate material and labour variances.

Calculate sales variances Standard Qty Rate Product X 1000 25 Product Y 500 28 Product Z 500 26

Actual Qty 1500 1200 1300

Rate 26 27 27

the standard cost to produce one unit of product Z hours rate/hour skilled 20 85 semi-skilled 35 55 unskilled 50 30 in the month of April 2008, 5000 units were produced. The actual labour are as follows: hours rate/hour skilled 95000 86 semi-skilled 178000 54 unskilled 252000 29 calculate labour variances

The standard material cost to produce 10 kg of chemical X is : 600 kg of material A @ Rs.15 per kg 300 kg of material B @ Rs.8 per kg 800 kg of material C @ Rs.5 per kg during a period 1500 kgs of mixture X was produced from the usage of 91000 kgs of material A at a cost of Rs.16 per kg 44500 kgs of material B at a cost of Rs.7.50 per kg 122500 kgs of material C at a cost of Rs.5.50 per kg calculate material variances.