Standard Costing

This query is : Resolved

Arun Somani (Querist)
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22 July 2009 Standard elements

Material rate Qty
A 3 100
B 5 50
C 4 200

Actual elements
Material rate Qty
A 4 100
B 4 50
X 5 150

How material price and usage variance will be calculated. What will be the nature of variance for material C and X.?

Prakash Kanaka M.P.

Prakash Kanaka M.P. (Expert)
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27 July 2009 Actual cost - standard cost = Variance

Actuals
A: 4 x 100 = 400
B: 4 x 50 = 200
C: 5 x 150 = 750
Total 1350

Standard
A: 3 x 100 = 300
B: 5 x 50 = 250
C: 4 x 200 = 800
Total 1350

1350-1350=0
Price Variance is 0