A manufacturing company uses the following standard mix of their compound in one batch of 100 kgs. of its production line :
50 kgs of material X at the standard price of Rs. 2.
30 kgs of material Y at the standard price of Rs. 3.
20 kgs of material Z at the standard price of Rs. 4.
The actual mix for a batch of 100 kgs was as follows:
60 kgs of material X at the price of Rs. 3.
40 kgs of material Y at the price of Rs. 2.5.
10 kgs of material Z at the price of Rs. 3.
Calculate the different material variances.
In October, 5,000 meters of raw material were purchased at an actual cost of $4.50 per meter. During October, 4,850 meters of the raw material were used to produce 2,400 units of the completed product. Standards call for 2 meters of the raw material for each unit of the completed product. The standard price of the raw material is $4.70 per meter. The materials variances for October were:
Materials price variance Materials quantity variance
A) $970 F $225 U
B) $1000 F $225 U
C) $970 F $235 U
D) $1000F $235 U
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