1(d)

MATERIAL COST VARIANCE

Total standard cost
Material Quantity in kg X 60 mix
price in TZS
A
2,400
B
1,800
C
600
D
1,200
TOTAL
6,000

1,500
1,200
1,400
500
1,200

Amount in TZS
3,600,000
2,160,000
840,000
600,000
7,200,000

Total actual cost

Material
A
B
C
D
TOTAL

Actual input quantity(kg)

2,200
2,000
500
1,400
6,100

Actual Price inTZS

1,600
1,100
1,500
500
1175.41

Amount in TZS
3,520,000
2,200,000
750,000
700,000
7,170,000

It is given by Total actual cost - Total standard cost

GIVEN , Total actual cost = 7,170,000

Total standard cost = 7,200,000
Hence cost variance = 7,170,000 - 7,200,000
TZS 30,000 F
MATERIAL PRICE VARIANCE
It is given by (Standard price Actual Price )

Material
A
B
C
D
PRICE VARIANCE

Budgeted price in
TZS
1,500
1,200
1,400
500

Actual input quantity

Actual Price inTZS

1,600
1,100
1,500
500

Actual input
quantity(kg)
2,200
2,000
500
1,400

Value TZS
(220,000)
200,000
(50,000)
0
(70,000) A

MATERIAL USAGE VAIANCE

It is given by Material Mix Variance + Material Yield varience

TZS 150,000 F + TZS 1,920,000 A
= TZS 1,770,000 A

MATERIAL MIX VARIANCE

It is given by (Standard input quantity Actual input quantity)

Material
A
B
C
D
MIX VARIANCE

Standard input
quantity(kg)
2,400
1,800
600
1,200

Standard Price

Actual input quantity(kg)

Standard
price
1,600
1,100
1,500
500

2,200
2,000
500
1,400

() Material Yield varience =

(

Value TZS
320,000
(220,000)
150,000
(100,000)
150,000 F

MIX
PROCESSED

SQUARE METRES
PRODUCED PER MIX

TOTAL
SQUARE
METRES

METRE SQUARE
PER TILE

TILES
PRODUCED
=

60

100

6,000

0.5m x0.125m =
0.125m/tile

48000

48,000
46,400
Standard price = TZS 1,200
THERE FORE , Material Yield varience
= TZS (48000 - 46,400) X1,200
= TZS 1,920,000 A