Lodha Ltd has established the following standard mix for producing 9 gallons of Product P:
|
|
|
|
5 gallons of Material A @ Rs. 7 per gallon |
35 |
|
3 gallons of Material B @ Rs. 5 per gallon |
15 |
|
2 gallons of Material C @ Rs. 2 per gallon |
4 |
|
54 |
A standard loss of 10% of input is expected to occur. Actual input was as follows:
53,000 gallons of Material A @ Rs. 7 per gallon.
28,000 gallons of Material B @ Rs. 5.30 per gallon.
19,000 gallons of Material C @ Rs. 2.20 per gallon.
Actual output for a period was 92,700 gallons of Product P.
Compute the Material Variances.