A company is manufacturing a chemical product making use of four different types of raw materials as follows : Raw material Share of total input (%) Cost of raw material ($/kg) A 40 50 B 30 80 C 20 90 D 10 100 There is an inevitable normal loss of 10% during the processing. For April 2019, the management furnished the following information : Raw material Quantity consumed (kgs.) Cost of raw material ($/kg) 42,000 31,000 18,000 9,000 A 48 B 80 C 92 110 Output obtained for the month was 92,000 kgs. Calculate : (a) Material cost variance, (b) Material price variance, (c) Material mix variance.

A company is manufacturing a chemical product making use of four different types of raw materials as follows : Raw material Share of total input (%) Cost of raw material ($/kg) A 40 50 B 30 80 C 20 90 D 10 100 There is an inevitable normal loss of 10% during the processing. For April 2019, the management furnished the following information : Raw material Quantity consumed (kgs.) Cost of raw material ($/kg) 42,000 31,000 18,000 9,000 A 48 B 80 C 92 110 Output obtained for the month was 92,000 kgs. Calculate : (a) Material cost variance, (b) Material price variance, (c) Material mix variance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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