MATERIAL VARIANCES:
1)
SC = SQ X SR
2)
AC = AQ X AR
3)
MCV = (SQ X SR) (AQ X AR)
4)
Or MCV = SC - AC
5)
MPV = (SR AR) AQ
6)
MUV = (SQ AQ) SR
7)
SQ/SQ for AO = SQ X AO (when SO #
AO)
SO
8)
MMV = (RSQ AQ) SR
9)
10)
11)
12)
1)
The standard cost of material for
manufacturing 1 unit of finished product is
estimated as follows.
16 kgs of material @ Re 1 per kg.
On completion of production of 1 unit it
was found that 20 kgs of material @
Rs.1.50 has been consumed.
Calculate : MCV, MPV and MUV
2)
A product X requires 10 kgs of
material @ Rs.4 per kg. Actual
consumption of material for
manufacturing of product X 12 kgs @
Rs.4.50 per kg.
Calculate Material Variances.
3)
Calculate Actual Cost when AQ is
15000 kgs and AR Rs.5 per kg.
4)
If AC is Rs.10,000 and AQ consumed
2,500 kgs calculate AR per kg.
5)
If SC is Rs.10,000 and SR per kg is Rs.2
calculate SQ
6)
Product Xrequires 10 kgs of material
at standard cost of Rs.35/The actual cost incurred Rs.39/- and actual
rate paid Rs.3 per kg. calculate Material
Variances.
7)
From the following data calculate SR if
MPV is 12 A and standard material 10 kgs
and actual material 12 kgs at actual cost
of Rs.72
8)
Find MCV, MPV and MUV from the
following:
SQ 6 kgs per unit and SP Rs.4/- per kg.
Actual units produced 1000 by
consuming 5,730 kgs at Rs.3.75 per kg.
9)
From the following information find SQ
when MUV is 25 F
SR Rs.5
AC Rs.120
AR Rs.8 (Ans SQ= 20kgs.)
Material
X
Material
Y
Standard
40 kgs @
50/- per kg.
50 kgs @
40/- per kg.
Actual
50 kgs @
50/- per
kg.
60 gs
@
45/per
kg.
Standard
Quantity(
Kg)
A
B
C
10
20
20
Actual
LABOUR VARIANCES
When SO # AO
SH for AO = SH/SO X AO
(2) To Calculate Revised Standard Hours
(RSH) = SH/TSH X TAH
Problems:
(4)
When SO # AO
(5)
(6)
(7)
5)
Standard
Hour Rat
s
e
Skilled
288 20
Labour
0
10
Semi Skilled 192
Labour
0
Output
108 units
Actual
Hou Rat
rs
e
176 25
0
05
264
0
90 units
6)
Assignment
Type of Labour
Skilled Labour
Unskilled
Labour
Semi Skilled
Labour
Output
Standard
Actual
Rate Hour Rat hour
p/hr
s
e
s
p/h
r
15
05 20 450
05
08 4.5
0
07
04
0 100
7.5 00
0 420
0
1unit
1000
units
SALES VARIANCES
Sales Value Variance
(AQ x AP) (BQ x BP)
Sales Price Variance
(AP - BP)AQ
Sales Volume Variance
(AQ - BQ)BP
Sales Mix Variance
(AQ RSQ)BP
Sales sub-volume (Qty) Variance
(RSQ - BQ)BP
=
=
=
=
=
A
B
Budgeted Sales
Quantit
Price
y
(Rs)
Units
1,000
2.10
3,000
3.25
Actual Sales
Quantit
Price
y
(Rs.)
Units
1,800
2.50
4,200
2.75
Assignment
Product
Budgeted Sales
Actual Sales
Quantit
Price
Quantit
Price
y
(Rs.p/u)
y
(Rs.p/u)
Units
Units
X
50,000
5
60,000
6
Y
40,000
6
50,000
5
Z
30,000
7
40,000
8
Calculate Sales Variances