Standard Costing

 

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.?
Replies (4)

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:)

 

Thanks!!  but my query is specific to material "C" and "X".

What will be the nature of variance for material "C" and "X".

I think u have created this question with ur imagination. If raw material C is required then how can material X be utilised???

It is a real world problem. Material C & X are subsitute to each other.

 

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