STANDARD (FOR 10 KGS OF OUTPUT)

A- 8 KGS @ Rs. 6per kg

B- 4 kgs @Rs. 4 per kg expectations
estimation
Actual (for 1000 kgs of output)
A- 750 kgs @ Rs. 7 per kgs
B- 500 kgs @ rs. 5 per kg) actual

recalculation of std qty for 1000 kgs of output

Raw materiald std qty std price std cost
A 800 kgs 6 4800
B 400 kgs 4 1600
6400

Raw materiald actual qty actual price actual cost

A 750 7 5250
B 500 5 2500
7750

Material cost variance std material cost- actual material cost

1350 adverse

Material price variance actual qty std price actual price

Raw material A 750 6 7
Raw material B 500 4 5

Raw material A 750 (6-7) 750 adverse

Raw material B 500 (4-5) 500 adverse
1250

Material usage variance std price

RM A 6 6(800-750) 300
RM B 4 4(400-500) 400
100

material yield variance

RM std qty act qty rev std qty
A 800 750 833
B 400 500 417
200 1250

material yield variance

rM std price std qty RSQ
A 6 800 833
B 4 400 417
1200 1250
RM A 6 (833-800) 198 A
RM B 4(417-400) 68 A
266 A

matwrial mix variance

RM act qty RSQ
A 750 833
B 500 417
1250 1250

Material mix variance sp (rsq-aq)

RM A 6 (833-750) 498 F
RM B 4(417-500) 332 A
166 F
MQV 100 A
favorable
adverse
adverse