cost accounting
This query is : Resolved
25 November 2009
how to formulate the formula of material variance analysis
25 November 2009
1.SQSP 2.AQAP 3.AQSP 4.RAQSP
SQ= STANDARD QUANTITY FOR ACTUAL CONSUMPTION.
SP= STANDARD MATERIAL PRICE.
AQ= ACTUAL QUANTITY CONSUMED.
AP= ACTUAL MATERIAL PRICE.
RAQ= REVISED ACTUAL QUANTITY.i.e ACTUAL QUANTITY RE-WRITTEN IN STANDARD PROPORTION.
MATERIAL VARIANCES ARE:
1. MCV = 1-2.
2. MPV = 3-2.
3. MUV = 1-3.
4. MMV = 4-3.
5. MSUV = 1-4.
MCV = MATERIAL COST VARIANCE.
MPV = MATERIAL PRICE VARIANCE.
MUV = MATERIAL USAGE VARIANCE.
MMV = MATERIAL MIX VARIANCE.
MSUV = MATERIAL SUB USAGE VARIANCE.
MCV = MPV + MUV.
MUV = MMV + MSUV.
SQ= STANDARD QUANTITY FOR ACTUAL CONSUMPTION.
SP= STANDARD MATERIAL PRICE.
AQ= ACTUAL QUANTITY CONSUMED.
AP= ACTUAL MATERIAL PRICE.
RAQ= REVISED ACTUAL QUANTITY.i.e ACTUAL QUANTITY RE-WRITTEN IN STANDARD PROPORTION.
MATERIAL VARIANCES ARE:
1. MCV = 1-2.
2. MPV = 3-2.
3. MUV = 1-3.
4. MMV = 4-3.
5. MSUV = 1-4.
MCV = MATERIAL COST VARIANCE.
MPV = MATERIAL PRICE VARIANCE.
MUV = MATERIAL USAGE VARIANCE.
MMV = MATERIAL MIX VARIANCE.
MSUV = MATERIAL SUB USAGE VARIANCE.
MCV = MPV + MUV.
MUV = MMV + MSUV.
25 November 2009
in material usage variance the method is
(SQ-AQ)SP IN THIS METHOD WHY WE USE STANDARD PRICE BUT IN MATERIAL PRICE VARIANCE WE USE (SP-AP)AQ WHY WE USE ACTUAL QTY PLEASE REPLY
(SQ-AQ)SP IN THIS METHOD WHY WE USE STANDARD PRICE BUT IN MATERIAL PRICE VARIANCE WE USE (SP-AP)AQ WHY WE USE ACTUAL QTY PLEASE REPLY
Dhirajlal Rambhia
(Expert)
08 August 2023
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