The standard material inputs required for 1, 000 kg of a finished output are given below.
|
Material in kg |
Quantity [Rs.] |
Standard Rate Per Kg & Rs. |
|
P |
450 |
20 |
|
Q |
400 |
40 |
|
R |
250 |
60 |
|
Total Input |
1100 |
|
|
Less: Standard Loss |
100 |
|
|
Standard Output |
1000 |
Actual production in a period was 20, 000 kg of the finished product for which the actual quantities of materials used and the prices paid thereof are as under.
|
Material |
Quantity Used – Kg |
Purchased Price Per Unit |
|
P |
10, 000 |
19 |
|
Q |
8, 500 |
42 |
|
R |
4, 500 |
65 |
Calculate Material Cost, Price, Quantity, Mix and Yield Variances. Prepare reconciliation among the
Variances