The Standard cost of material for manufacturing a unit of a particular products estimated as follow as 16kg of raw material at the rate of 1 dollar per kg. On completion of the unit, it was found that 20 kg of raw material costing 1.50 per Kg has been consumed. Compute the material variance.

Q: The standard cost of Product B manufactured by Sandhill Company includes 3.0 units of direct…

A: Total material variance  = Standard quantity ×Standard price  - Actual quantity ×Actual price

Q: Standards established for a particular raw material used by Troop Company are as follows: Standard…

A: Material quantity variance is the difference between actual material used in production and expected…

Q: Hardin Company has the following information available for the current year:   Standard:…

A: Material Price Variance (MPV) = (Standard Price – Actual Price) x Actual Quantity…

Q: Stonier Company has a materials price standard of $2.00 per pound. Five thousand pounds of materials…

A: The variance is the difference between actual and Budgeted data.

Q: In a period, 11,280 kg of material were used and should have cost (according to the standard cost…

A: Material usage variance is the difference between standard quantity of material for actual output…

Q: The standards for direct materials in making a certain product are 20 pounds at $0.75 per pound.…

A:

Q: A company has established 5 pounds of Material J at $2 per pound as the standard for the material in…

A: Material quantity variance:  Material quantity variance is the efficiency variance of materials.…

Q: A review of Sunshine’s accounting records at the end of the period disclosed a material usage…

A: Standard quantity = 11,000 units x 5 gallons = 55,000 gallons   Standard price = $0.3   Actual…

Q: Swifty has a standard of 1.2 pounds of materials per unit, at $4 per pound. In producing 3000 units,…

A: Total Materials Variance: Difference between the Standard material costs and the actual material…

Q: The standard materials cost to produce 1 unit of Product R is 6 pounds of material at a standard…

A: To calculate: DM quantity variance   Standard quantity = 6,600 units x 6 = 39,600 pounds Actual…

Q: The standard composition of material that is used in the production of product ‘Flurry’ is as…

A: Standard costing means where standard is set for various cost element and actual cost is then…

Q: Assume the following: • The standard price per pound is $2.00. • The standard quantity allowed per…

A: Material price variance is the difference of the standard price and the actual price paid for the…

Q: Edgar, Inc. has a materials price standard of $2.00 per pound. Six thousand pounds of materials were…

A: Formula: Material Quantity variance = (Standard quantity of material allowed for Actual output –…

Q: The standard quantity allowed for the units produced was 4,500 pounds, the standard price was P2.50…

A: Standard quantity allowed for actual production  =4500 pounds Standard quantity per unit = 1 pound

Q: Longman, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is…

A: Direct material variance: direct material variance is variance analysis done by the company to know…

Q: A total of 6,850 kilograms of a raw material was purchased at a total cost of 20,550. The material…

A: Introduction: A Material Price Variance occurs when the actual price billed for materials used in…

Q: Swifty has a standard of 1.2 pounds of materials per unit, at $4 per pound. In producing 3000 units,…

A: Materials Variance :— Variance analysis direct material price variance is the difference between the…

Q: DRS Manufacturing has the following standards for one of its products:  Production Costs Direct…

A: Direct Material price variance= (Actual price per meter - Standard price per meter) x Actual…

Q: At the beginning of the year, Craig Company had the following standard cost sheet for one of its…

A: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…

Q: he standard costs and actual costs for direct materials for the manufacture of 2,800 actual units of…

A: Variance analysis is a type of analysis that is used to distinguish between actual and planned…

Q: The united Company produced 2,500 units of the product X by using 4,700 kg of direct materials A out…

A: Direct Materials Price Variance is calculated by: = Actual Quantity Purchased * (Standard Price -…

Q: The following information is available for Anuounyam Manufacturing Company for June when the company…

A: Direct Labor Rate Variance: The direct labor rate variance is a measure to determine the variation…

Q: the standard product mix for making 12,500 tubes of liquid solder is:     Kgs. Cost/Unit Total…

A: Answer) Calculation of Materials Yield Variance Material Yield Variance = (Standard Quantity of…

Q: Production of each unit of 001 requires 8 lbs. of B at a cost of P9 per lb. and 4 lbs. of X at…

A: Standard                       Qty      Rate            Amt Material B     8000     P9…

Q: Assume the following: The actual price per pound is $2.25. The standard quantity of pounds allowed…

A: The variance is the difference between the actual data and standard output of the production.…

Q: Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one…

A: Here Price Variance we will get  [ Bud. Price - Actual Price] x Budgeted Qty Produced…

Q: A quantity of a particular raw material was purchased for $43,250. The standard cost of the material…

A: The material price variance is unfavorable when the actual cost is less than the standard cost.

Q: Turrubiates Corporation makes a product that uses a material with the following standards:…

A: Durect material quantity variance (Standard quantity-Actual quantity)*Standard rate

Q: The standard price per kilogram for the raw material must be

A: Computation of standard price per kilogram (SP) is shown below :

Q: At the beginning of the year, Craig Company had the following standard cost sheet for one of its…

A:

Q: The following standard costs per unit, of one product, have been taken from the records of Bahrain…

A:

Q: Elder furnishes the following information for the year. Standard: Material for 70 kgs finished…

A: Formulas: Material usage variance =(Standard quantity  - Actual quantity)* standard price Material…

Q: The standard direct labour cost of product Zeta is as follows: Three hours of skilled labour at £4…

A: This question is taken from standard costing. In this question, we have been asked to calculate…

Q: Indicom Ltd presents the following information with a product: Standard level of consumption of…

A: Standard costing was used to measure the performance of an activity by making an comparison between…

Q: The following standard costs per unit, of one product, have been taken from the records of Bahrain…

A:

Q: The Russell Company provides the following standard cost data per unit of product:           Direct…

A: Direct material usage variance helps to determine the difference between the standard quantity of…

Q: Nolan Mills uses a standard cost system. During May, Nolan manufactured 15,000 pillowcases, using…

A: Material Price Variance = ( Standard Price - Actual Price ) x Actual Quantity Material Quantity…

Q: A product has budgeted production of 1,000 units and a material cost of £14,000; the standard cost…

A: Answer) Calculation of Material Price variance Material price variance = (Standard price per Kg of…

Q: The standard costs and actual costs for direct materials for the manufacture of 2,000 actual units…

A: Formula to calcualte Direct material price variance:Direct material price variance = (Standard price…

Q: Assume the following: The standard price per pound is $2.15. The standard quantity of pounds…

A: The material quantity variance is calculated as difference of standard price of materials minus…

Q: Starts Inc.  produces a product for which the standard specifies 4 yards of material per unit. The…

A: Variance: It refers to the difference between the standard or budgeted and actual results. The…

Q: has a standard of 2 pounds of materials per unit, at $6 per pound. In producing 2,000 units, Yari…

A: Material quantity variance = (Standard quantity - Actual quantity) x Standard price Material…

Q: Assume the following information (the quantity of materials purchased = the quantity used):…

A: Variances are difference between actual cost and standard cost. If actual cost is higher than…

Q: Glassica, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is…

A: Material efficiency variance = Standard price × [Actual quantity - Standard quantity]

Q: Assume the following: • The standard price per pound is $2.00. • The standard quantity of pounds…

A: Material Price Variance - It is calculated by using following formula - (Actual Quantity Purchased *…

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.