Arun Somani (Service) (30 Points)
20 July 2009
neha
(assistant)
(28 Points)
Replied 21 July 2009
material price variance=AQ*SP-AQ*AP
A = 3*100-4*100
= -100(UNFAVOUABLE)
MATERIAL USAGE VARIANCE = SQ*SP-AQ*SP
A = 3*100-3*100
= 0
THIS IS HOW U CAN CALCULATE OTHER VARIANCES:)
Arun Somani
(Service)
(30 Points)
Replied 21 July 2009
Thanks!! but my query is specific to material "C" and "X".
What will be the nature of variance for material "C" and "X".
pulkit gupta
(CA final student)
(160 Points)
Replied 01 August 2009
I think u have created this question with ur imagination. If raw material C is required then how can material X be utilised???
Arun Somani
(Service)
(30 Points)
Replied 01 August 2009
It is a real world problem. Material C & X are subsitute to each other.
CAclubindia
