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

 

 

[Rs]

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