Q1. From the following,
calculate Material Variances
Quantity of material
purchased 2,500 units
Value of material purchased
Rs 7,500
Standard quantity of
material required for one ton of finished product 25 units
Standard rate of material Rs 2 per unit
Finished production 80
tons
Q2. A manufacturing concern,
which has adopted standard costing, furnishes the following data:
Standard: Material for 70 kg finished
products: 100kg
Price of Materials:
Re 1 per kg
Actual: Output: 2,10,000 kg
Materials used:
2,80,000 kg
Cost of material:
Rs 2,52,000
Calculate: Material Usage Variance,
Material Price Variance, Material Cost Variance.
Q3. From the following
particulars compute all material variances:
Quantity of materials: 3,000
units
Value of materials
purchased Rs 9,000
Standard quantity of
material required per tonne of output: 30
units
Standard rate of materials:
Rs 2.50 per
unit
Opening stock of material: Nil
Closing stock of material: 500 units
Output during the period: 80 tonnes
Q4. A furniture manufacturer
sunmica tops for tables. From the following information, find out the Price
Variance, Usage Variance and Cost Variance;
Standard quantity of
sunmica per table: 4sq. ft.
Standard price per sq ft of
sumica: Rs
5
Actual production of
tables: 1,000
Sunmica actually used: 4,300
sq. ft.
Actual purchase price of
sunmica per sq. ft.: Rs 5.50
Q5. From the following compute
Material Variances
|
Material
|
Standard
|
Actual
|
||
|
|
Kilo
|
Price
|
Kilo
|
Price
|
|
A
|
10
|
2
|
5
|
3
|
|
B
|
20
|
3
|
10
|
6
|
|
C
|
20
|
6
|
15
|
5
|
Q6. ABC produces an article by
mixing 2 inputs. Following standards have been set up for input
|
Material
|
Standard
Mix
|
Standard
Price per kg
|
|
X
|
40%
|
Rs
4
|
|
Y
|
60%
|
Rs
3
|
The standard loss in
processing is 15%. During September, 2009, the company produced 1,700 kg of
finished output. The actual position of inputs was as under:
|
Material
|
Purchases
(kg)
|
Rate
|
|
X
|
830
|
Rs
4.25 per kg
|
|
Y
|
1,190
|
Rs
2.50 per kg
|
Calculate all possible
Material Variances.
Q7. The standard cost of a
certain drug is:
40% of Material A at Rs 20
per lb
60% of Material B at Rs 30
per lb
Standard loss expected in
production is 10%. In a certain period 90 lbs of Material A at Rs 18 per lb and
110 lb of Material B at Rs 34 per lb were used. Good production realised was
182 lbs. Calculate the different material variances.
Q8. A Chemical Industry
provides you the following information from their records. For making 10 kgs of
VANISH, standard material requirement are:
|
Material
|
Quantity
(kg)
|
Rate
per kg (Rs)
|
|
A
|
8
|
6
|
|
B
|
4
|
4
|
During April, 2009, 1,000
kg of VANISH were produced. Actual consumption of materials is as under:
|
Material
|
Quantity
(kg)
|
Rate
per kg (Rs)
|
|
A
|
750
|
7
|
|
B
|
500
|
5
|
Calculate all material
variances.
Q9. The standard material cost
for 100 kg of Chemical X is made up of:
Chemical A 30 kg @ Rs 4 per kg
Chemical B 40 kg @ Rs 5 per kg
Chemical C 80 kg @ Rs 6 per kg
In a batch, 500
kg of chemical X were produced from the mix of:
Chemical A 140 kg at a cost of Rs 588
Chemical B 220 kg at a cost of Rs 1,056
Chemical C 440 kg at a cost of Rs 2,860
How do the yield, mix and
the price factor contribute to the variance in the actual per 100 kg of
Chemical X over standard cost? Calculate Material Usage Variance, Material
Price Variance, Material Cost Variance.
Q10. The Ideal Alloy Co Ltd
manufactures a single product, the Standard Mix of which is:
Material A 60% @ 20 per kg
Material B 40% @ 10 per kg
Normal Loss in production
is 20% of input. Due to shortage of Material A, the standard mix was changed.
Actual results for
December, 2009 were:
|
Material A
|
210 kgs
|
at Rs 20
|
4,200
|
|
Material B
|
190 kgs
|
at Rs 9
|
1,710
|
|
Input
|
400 kgs
|
|
5,910
|
|
Loss
|
80 kgs
|
|
-
|
|
Output
|
320 kgs
|
|
5,910
|
Calculate Material Price
and Usage Variances
Q11. Using the following
information for Department A, calculate all possible labour variances:
|
Actual wage rate per hour
|
Rs
3.40
|
|
Standard hours for
production
|
8,640
hours
|
|
Standard rate per hour
|
Rs
3
|
|
Actual hours worked
|
8,200
hours
|
Q12. Calculate all labour
variances from the following data:
|
|
Standard
|
Actual
|
||
|
|
Hours
|
Hourly
Rate
|
Hours
|
Hourly
Rate
|
|
Skilled labour
|
2,880
|
20
|
1,760
|
25
|
|
Semi-skilled labour
|
1,920
|
10
|
2,640
|
5
|
|
Total
|
4,800
|
|
4,400
|
|
|
Output
|
108
kg
|
|
90
kg
|
|
Q13. Calculate labour variances
from the following:
|
Standard rate
|
Rs
4 per hour
|
|
Standard time
|
10
hours per unit
|
|
Actual production
|
11,000
units
|
|
Hours taken: Production
Ideal
Total
|
11,500
500
12,000
|
Payment of Rs 60,000 was
made @ Rs 5 per hour
Q14. The details regarding the
composition and the weekly wage rates of labour force engaged on a job
scheduled to be completed in 30 weeks are as follows:
|
Category of
|
Standard
|
Actual
|
||
|
Worker
|
No. of Labourers
|
Weekly
wage
rate
per labourer
|
No. of Labourers
|
Weekly
wage
rate
per Labourer
|
|
Skilled
|
75
|
60
|
70
|
70
|
|
Semi-skilled
|
45
|
40
|
30
|
50
|
|
Un-skilled
|
60
|
30
|
80
|
20
|
The work is actually
completed in 32 weeks. Calculate the various labour variances.
Q15. The budgeted labour force
producing 1,000 articles of ‘B’ is:
|
|
Total
Standard Hours
|
Total
Standard Cost
|
|
300 men @ 40 P per hour
for 50 hrs
|
1,500
|
600
|
|
20 women @ 30 P per hour
for 30 hrs
|
600
|
180
|
|
10 boys @ 20 P per hour
for 20 hrs
|
200
|
40
|
|
|
2,300
|
820
|
The actual data and related
work force are as follows. Articles produced 1,000.
|
|
Total
Actual Hours
|
Total
Actual Cost
|
|
25 men @ 45 P per hour
for 50 hrs
|
1,250
|
562.50
|
|
30 women @ 30 P per hour
for 30 hrs
|
900
|
270
|
|
10 boys @ 20 P per hour
for 15 hrs
|
150
|
30
|
Calculate Labour Cost
Variance, Labour Rate Variance, Labour Efficiency Variance.
Q16. A factory working for 50
hours a week, employees 100 workers on a job work. The standard rate is Re 1
per hour and standard output is 200 units per gang hour. During a week in June,
10 employees were paid at 80 paise per hour and 5 at Rs 120 per hour, rest of
the employees were paid at standard hour rate. Actual number of units produced
were 10,200. Calculate Labour Cost Variances.
Q17. XYZ Ltd. operates on a
standard costing system. The budgeted overheads for the current year were fixed
at Rs 4,20,000 with a predetermined overheads recovery rate of Rs 7 per direct
labour hour. The actual direct labour hours for the year amounted to 62,000
against which only 61,500 hours should have been spent for the production
completed during the year. The actual overhead rate worked out at Rs 6.75 per
direct labour hour. Compute all possible overheads variances.
