standard costing

pls solve this

a company is producing a std mix by using 60 kg of material x and 40 kg of material y . the std loss of production is 30% .the std price of x is 5 per kg and that of y at 10 per kg .the actual mixture and yield were as follows .

x 80kg @ 4.50 per kg       y70kg @ 8 per kg

actual yield 115 kg

pls calculate material cost variances

Replies (3)

                                STANDARD                                                 ACTUAL

                  QTY          RATE     AMOUNT                QTY         RATE          AMOUNT

    X             60               5              300                       80             4.5                360 

    Y             40              10             400                        70              8                  560

                                                   ---------------                                              ----------------------

                                                       700                                                               920

 

PLEASE CONSIDER REVISED ANSWER.....................

bro in tulsian the answer is 230 f yaar why u have nt treated std loss like if 100 is input then 70 is output so if 115 is output then input will be 164.28 (by unitary method) bt is se bi answer is nt comming right? pls also tell .. why u have nt considered std losS?? of 30%

YES YOU ARE RIGHT , I FORGOT CONSIDER STANDARD LOSS....................

SORRY , ACCORDINGLY ANSWER WILL BE AS FOLLOW :-

STD COMPARABLE

X     98.574     5         492.87

Y    65.716       10       657.16

      164.29                   1150.03

 

MAT COST VAR. = 1150.03 - 920

                              =   230 (F)

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