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  • MCV 04

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    rikesh radhe
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    The document provides data to calculate material variances, including standard and actual output quantities, material requirements per unit, and material prices. It then shows the calculations for: (1) standard quantity of material for actual output, (2) actual material consumed, and (3) three variances - a material cost variance of Rs. -200 which is unfavorable, a material price variance of Rs. 600 which is favorable, and a material usage variance of Rs. -800 which is unfavorable. It verifies that the material cost variance equals the sum of the material price and usage variances.

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    MCV_04 (1)

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    The document provides data to calculate material variances, including standard and actual output quantities, material requirements per unit, and material prices. It then shows the calculations for: (1) standard quantity of material for actual output, (2) actual material consumed, and (3) three variances - a material cost variance of Rs. -200 which is unfavorable, a material price variance of Rs. 600 which is favorable, and a material usage variance of Rs. -800 which is unfavorable. It verifies that the material cost variance equals the sum of the material price and usage variances.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    12 views1 page

    MCV 04

    Uploaded by

    rikesh radhe
    The document provides data to calculate material variances, including standard and actual output quantities, material requirements per unit, and material prices. It then shows the calculations for: (1) standard quantity of material for actual output, (2) actual material consumed, and (3) three variances - a material cost variance of Rs. -200 which is unfavorable, a material price variance of Rs. 600 which is favorable, and a material usage variance of Rs. -800 which is unfavorable. It verifies that the material cost variance equals the sum of the material price and usage variances.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 1

    calculate material variances from the following data.

    Particulars standards Actual


    output 100 units 200 units
    quantity of material required per
    unit of output 2kgs per unit 3 kgs per unit
    Price Rs. 4 per kg Rs. 3 per kgs

    solution
    a) Standard quantity of raw material for actual ouput ( SQ) = 200 units *2 kgs per unit= 400 kgs
    b) Standard Price = Rs. 4 per kg
    c) Actual quantity of raw material consumed = 200 units *3 kgs per unit= 600 kgs
    d) Actual Price = Rs. 3 per kg

    i) material cost variance(MCV)= (SQ*SP) - (AQ*AP)


    =(400 kgs* Rs. 4 ) - (600 kg*Rs.3)
    =Rs. 1600 - Rs. 1800 =(-Rs. 200)----------------adverse or unfavourable

    ii) material price variance (MPV)=(SP-AP)*AQ


    =(Rs. 4 - Rs. 3) *600 kgs
    =Rs. 600------------favourable

    iii) material usae variance (MUV)= (SQ-- AQ)*SP


    =(400 kgs - 600 kgs) * Rs. 4
    =(-Rs. 800)---------------unfavourable

    verification
    MCV= MPC + MUV
    (-200)= 600+(-800)

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