Bonito Designs Ltd. a manufacturing concern produces a product called Zedex. The company uses standarc costing and is furnishing the following information for the month ending March 31, 2021: The standard mix to produce one unit of its product Zedex and the actual production & consumption are as under- Standard for 1 unit Actual production Material A 30kg @ Rs. 30 per kg 320kg @ Rs. 35 per kg Material B 40kg @ Rs. 50 per kg 475kg @ Rs. 55 per kg Material C 50kg @ Rs. 40 per kg 435kg @ Rs. 36 per kg During the month of March 2021, 10 units of product Zedex were actually produced. Required: Calculate the following Material Variances: () Material Cost Variance (ii) Material Price Variance (iii) Material Usage Variance (iv) Material Mix Variance (v) Material Yield Variance
Bonito Designs Ltd. a manufacturing concern produces a product called Zedex. The company uses standarc costing and is furnishing the following information for the month ending March 31, 2021: The standard mix to produce one unit of its product Zedex and the actual production & consumption are as under- Standard for 1 unit Actual production Material A 30kg @ Rs. 30 per kg 320kg @ Rs. 35 per kg Material B 40kg @ Rs. 50 per kg 475kg @ Rs. 55 per kg Material C 50kg @ Rs. 40 per kg 435kg @ Rs. 36 per kg During the month of March 2021, 10 units of product Zedex were actually produced. Required: Calculate the following Material Variances: () Material Cost Variance (ii) Material Price Variance (iii) Material Usage Variance (iv) Material Mix Variance (v) Material Yield Variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please answer complete
Transcribed Image Text:Bonito Designs Ltd. a manufacturing concern produces a product called Zedex. The company uses standard
costing and is furnishing the following information for the month ending March 31, 2021:
The standard mix to produce one unit of its product Zedex and the actual production & consumption are as
under-
EILIL
Standard for 1 unit
Actual production
Material A
30kg @ Rs. 30 per kg
320kg @ Rs. 35 per kg
Material B
40kg @ Rs. 50 per kg
475kg @ Rs. 55 per kg
Material C
50kg @ Rs. 40 per kg
435kg @ Rs. 36 per kg
During the month of March 2021, 10 units of product Zedex were actually produced.
Required: Calculate the following Material Variances:
(i) Material Cost Variance
(ii) Material Price Variance
(iii) Material Usage Variance
(iv) Material Mix Variance
(v) Material Yield Variance
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education