Commerce Exam > Commerce Questions > Ques.1. The standard mix of a product is - Ma...
Start Learning for Free
Ques.1. The standard mix of a product is - Material. Units Rate X. 50 0.25 per unit Y. 100 0.15 per unit Z. 90 0.15 per unit 10 units of the finished product are obtained from this mix. During the month of March 2014, 10 mixes were completed and the consumption was- Material units Rate X. 575 0.20 Y. 1050 0.26 Z. 825 0.16 Actual output was 90 units. Calculate material varience.?
Most Upvoted Answer
Ques.1. The standard mix of a product is - Material. Units Rate X. 50 ...
Material Variance Calculation:
To calculate the material variance, we need to determine the standard cost for the actual units produced and compare it with the actual cost incurred. The material variance can be divided into two components: the material price variance and the material usage variance.
1. Material Price Variance:
The material price variance measures the difference between the standard cost of materials and the actual cost of materials, considering the difference in the price per unit.
Material X:
Standard Cost = 50 units * $0.25 per unit = $12.50
Actual Cost = 575 units * $0.20 per unit = $115
Material Y:
Standard Cost = 100 units * $0.15 per unit = $15
Actual Cost = 1050 units * $0.26 per unit = $273
Material Z:
Standard Cost = 90 units * $0.15 per unit = $13.50
Actual Cost = 825 units * $0.16 per unit = $132
Total Standard Cost = $12.50 + $15 + $13.50 = $41
Total Actual Cost = $115 + $273 + $132 = $520
Material Price Variance = Total Standard Cost - Total Actual Cost
Material Price Variance = $41 - $520
Material Price Variance = -$479
The material price variance is -$479, indicating that the actual cost of materials was higher than the standard cost.
2. Material Usage Variance:
The material usage variance measures the difference between the standard quantity of materials allowed for the actual production and the actual quantity of materials used.
Material X:
Standard Quantity = 50 units * 10 mixes = 500 units
Actual Quantity = 575 units
Material Y:
Standard Quantity = 100 units * 10 mixes = 1000 units
Actual Quantity = 1050 units
Material Z:
Standard Quantity = 90 units * 10 mixes = 900 units
Actual Quantity = 825 units
Total Standard Quantity = 500 + 1000 + 900 = 2400 units
Total Actual Quantity = 575 + 1050 + 825 = 2450 units
Material Usage Variance = Standard Quantity - Actual Quantity
Material Usage Variance = 2400 - 2450
Material Usage Variance = -50
The material usage variance is -50 units, indicating that more materials were used than the standard quantity allowed for the actual production.
Summary:
Material Price Variance = -$479
Material Usage Variance = -50 units
The negative material price variance suggests that the materials were purchased at a higher price than the standard cost. Additionally, the negative material usage variance indicates that more materials were used than expected for the actual production.
Overall, the material variance for the month of March 2014 is unfavorable, as both the material price variance and the material usage variance are negative. This suggests that there were inefficiencies or unexpected costs associated with the materials used in the production process.
To calculate the material variance, we need to determine the standard cost for the actual units produced and compare it with the actual cost incurred. The material variance can be divided into two components: the material price variance and the material usage variance.
1. Material Price Variance:
The material price variance measures the difference between the standard cost of materials and the actual cost of materials, considering the difference in the price per unit.
Material X:
Standard Cost = 50 units * $0.25 per unit = $12.50
Actual Cost = 575 units * $0.20 per unit = $115
Material Y:
Standard Cost = 100 units * $0.15 per unit = $15
Actual Cost = 1050 units * $0.26 per unit = $273
Material Z:
Standard Cost = 90 units * $0.15 per unit = $13.50
Actual Cost = 825 units * $0.16 per unit = $132
Total Standard Cost = $12.50 + $15 + $13.50 = $41
Total Actual Cost = $115 + $273 + $132 = $520
Material Price Variance = Total Standard Cost - Total Actual Cost
Material Price Variance = $41 - $520
Material Price Variance = -$479
The material price variance is -$479, indicating that the actual cost of materials was higher than the standard cost.
2. Material Usage Variance:
The material usage variance measures the difference between the standard quantity of materials allowed for the actual production and the actual quantity of materials used.
Material X:
Standard Quantity = 50 units * 10 mixes = 500 units
Actual Quantity = 575 units
Material Y:
Standard Quantity = 100 units * 10 mixes = 1000 units
Actual Quantity = 1050 units
Material Z:
Standard Quantity = 90 units * 10 mixes = 900 units
Actual Quantity = 825 units
Total Standard Quantity = 500 + 1000 + 900 = 2400 units
Total Actual Quantity = 575 + 1050 + 825 = 2450 units
Material Usage Variance = Standard Quantity - Actual Quantity
Material Usage Variance = 2400 - 2450
Material Usage Variance = -50
The material usage variance is -50 units, indicating that more materials were used than the standard quantity allowed for the actual production.
Summary:
Material Price Variance = -$479
Material Usage Variance = -50 units
The negative material price variance suggests that the materials were purchased at a higher price than the standard cost. Additionally, the negative material usage variance indicates that more materials were used than expected for the actual production.
Overall, the material variance for the month of March 2014 is unfavorable, as both the material price variance and the material usage variance are negative. This suggests that there were inefficiencies or unexpected costs associated with the materials used in the production process.
Community Answer
Ques.1. The standard mix of a product is - Material. Units Rate X. 50 ...
Is it cost Accounting Question ?
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
Ques.1. The standard mix of a product is - Material. Units Rate X. 50 0.25 per unit Y. 100 0.15 per unit Z. 90 0.15 per unit 10 units of the finished product are obtained from this mix. During the month of March 2014, 10 mixes were completed and the consumption was- Material units Rate X. 575 0.20 Y. 1050 0.26 Z. 825 0.16 Actual output was 90 units. Calculate material varience.?
Question Description
Ques.1. The standard mix of a product is - Material. Units Rate X. 50 0.25 per unit Y. 100 0.15 per unit Z. 90 0.15 per unit 10 units of the finished product are obtained from this mix. During the month of March 2014, 10 mixes were completed and the consumption was- Material units Rate X. 575 0.20 Y. 1050 0.26 Z. 825 0.16 Actual output was 90 units. Calculate material varience.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Ques.1. The standard mix of a product is - Material. Units Rate X. 50 0.25 per unit Y. 100 0.15 per unit Z. 90 0.15 per unit 10 units of the finished product are obtained from this mix. During the month of March 2014, 10 mixes were completed and the consumption was- Material units Rate X. 575 0.20 Y. 1050 0.26 Z. 825 0.16 Actual output was 90 units. Calculate material varience.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ques.1. The standard mix of a product is - Material. Units Rate X. 50 0.25 per unit Y. 100 0.15 per unit Z. 90 0.15 per unit 10 units of the finished product are obtained from this mix. During the month of March 2014, 10 mixes were completed and the consumption was- Material units Rate X. 575 0.20 Y. 1050 0.26 Z. 825 0.16 Actual output was 90 units. Calculate material varience.?.
Ques.1. The standard mix of a product is - Material. Units Rate X. 50 0.25 per unit Y. 100 0.15 per unit Z. 90 0.15 per unit 10 units of the finished product are obtained from this mix. During the month of March 2014, 10 mixes were completed and the consumption was- Material units Rate X. 575 0.20 Y. 1050 0.26 Z. 825 0.16 Actual output was 90 units. Calculate material varience.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Ques.1. The standard mix of a product is - Material. Units Rate X. 50 0.25 per unit Y. 100 0.15 per unit Z. 90 0.15 per unit 10 units of the finished product are obtained from this mix. During the month of March 2014, 10 mixes were completed and the consumption was- Material units Rate X. 575 0.20 Y. 1050 0.26 Z. 825 0.16 Actual output was 90 units. Calculate material varience.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ques.1. The standard mix of a product is - Material. Units Rate X. 50 0.25 per unit Y. 100 0.15 per unit Z. 90 0.15 per unit 10 units of the finished product are obtained from this mix. During the month of March 2014, 10 mixes were completed and the consumption was- Material units Rate X. 575 0.20 Y. 1050 0.26 Z. 825 0.16 Actual output was 90 units. Calculate material varience.?.
Solutions for Ques.1. The standard mix of a product is - Material. Units Rate X. 50 0.25 per unit Y. 100 0.15 per unit Z. 90 0.15 per unit 10 units of the finished product are obtained from this mix. During the month of March 2014, 10 mixes were completed and the consumption was- Material units Rate X. 575 0.20 Y. 1050 0.26 Z. 825 0.16 Actual output was 90 units. Calculate material varience.? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Ques.1. The standard mix of a product is - Material. Units Rate X. 50 0.25 per unit Y. 100 0.15 per unit Z. 90 0.15 per unit 10 units of the finished product are obtained from this mix. During the month of March 2014, 10 mixes were completed and the consumption was- Material units Rate X. 575 0.20 Y. 1050 0.26 Z. 825 0.16 Actual output was 90 units. Calculate material varience.? defined & explained in the simplest way possible. Besides giving the explanation of
Ques.1. The standard mix of a product is - Material. Units Rate X. 50 0.25 per unit Y. 100 0.15 per unit Z. 90 0.15 per unit 10 units of the finished product are obtained from this mix. During the month of March 2014, 10 mixes were completed and the consumption was- Material units Rate X. 575 0.20 Y. 1050 0.26 Z. 825 0.16 Actual output was 90 units. Calculate material varience.?, a detailed solution for Ques.1. The standard mix of a product is - Material. Units Rate X. 50 0.25 per unit Y. 100 0.15 per unit Z. 90 0.15 per unit 10 units of the finished product are obtained from this mix. During the month of March 2014, 10 mixes were completed and the consumption was- Material units Rate X. 575 0.20 Y. 1050 0.26 Z. 825 0.16 Actual output was 90 units. Calculate material varience.? has been provided alongside types of Ques.1. The standard mix of a product is - Material. Units Rate X. 50 0.25 per unit Y. 100 0.15 per unit Z. 90 0.15 per unit 10 units of the finished product are obtained from this mix. During the month of March 2014, 10 mixes were completed and the consumption was- Material units Rate X. 575 0.20 Y. 1050 0.26 Z. 825 0.16 Actual output was 90 units. Calculate material varience.? theory, EduRev gives you an
ample number of questions to practice Ques.1. The standard mix of a product is - Material. Units Rate X. 50 0.25 per unit Y. 100 0.15 per unit Z. 90 0.15 per unit 10 units of the finished product are obtained from this mix. During the month of March 2014, 10 mixes were completed and the consumption was- Material units Rate X. 575 0.20 Y. 1050 0.26 Z. 825 0.16 Actual output was 90 units. Calculate material varience.? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup