In a manufacturing process, the following standards apply : Standard price of raw material: A-₹1 per kg. and B-₹5 per kg. Standard mix A-75% and B 25% Standard yield: 90% In a period the actual usage, costs and output we
CS Executive · Cost and Management Accounting · PYQS · December 2014
In a manufacturing process, the following standards apply : Standard price of raw material: A-₹1 per kg. and B-₹5 per kg. Standard mix A-75% and B 25% Standard yield: 90% In a period the actual usage, costs and output were as follows: 4,400 kgs. of A costing ₹4,650 1,600 kgs. of B costing ₹7,850 Output 5,670 kgs. The material cost variance is —
Answer & Explanation:
Correct Answer: Option (A)
Correct answer: (A) ₹100 (F). Standard input for output = 5,670/90% = 6,300 kg. Weighted standard price = 75%×1 + 25%×5 = 2. Standard cost 12,600 − actual 12,500 = 100 favourable.
Topics: Standard Costing
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