Calculate the material variances from the following data Material A standard orice per tonne $10 standard usage per unit 30 tonnes actual price per tonne $9 actual usage per unit 35 tonnes Material B standard orice per tonne $16 standard usage per unit 60 tonnes actual price per tonne $16 actual usage per unit 54 tonnes Material C standard orice per tonne $34 standard usage per unit 30 tonnes actual price per tonne $28 actual usage per unit 38 tonnes
Calculate the material variances from the following data Material A standard orice per tonne $10 standard usage per unit 30 tonnes actual price per tonne $9 actual usage per unit 35 tonnes Material B standard orice per tonne $16 standard usage per unit 60 tonnes actual price per tonne $16 actual usage per unit 54 tonnes Material C standard orice per tonne $34 standard usage per unit 30 tonnes actual price per tonne $28 actual usage per unit 38 tonnes
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Calculate the material variances from the following data
Material A standard orice per tonne $10
Material A standard orice per tonne $10
standard usage per unit 30 tonnes
actual price per tonne $9
actual usage per unit 35 tonnes
Material B standard orice per tonne $16
standard usage per unit 60 tonnes
actual price per tonne $16
actual usage per unit 54 tonnes
Material C standard orice per tonne $34
standard usage per unit 30 tonnes
actual price per tonne $28
actual usage per unit 38 tonnes
Material D standard orice per tonne $20
standard usage per unit 31 tonnes
actual price per tonne $18
actual usage per unit 28 tonnes
Material E standard Price per tonne $4
standard usage per unit 280 kg
actual price per tonne $5
actual usage per unit 310 tonnes
Material F standard price per tonne $75
standard usage per unit 5000 tonnes
actual price per tonne $66
actual usage per unit 4950 tonnes
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