pls sovle this question
std cot per unit of X
material 50 kg @ rs 40 per kg
actual production 100 units
actual material cost rs 42 per kg
mat price variance 9800 adverse
material usage variance 4000 faverouble
calculate the actual quantity of material used??
pls help me ..
MATERIAL PRICE VARIANCE = ACTUAL QTY USED (STANDARD PRICE - ACTUAL PRICE )
-9800 = A.Q. (40 - 42)
-9800 = A.Q. (-2)
ACTUAL QTY = 4900 KG.
YOU CAN VERIFY THIS ANSWER WITH CALCULATING USAGE VARIANCE :
MAT. USAGE VAR. = STANDARD PRICE (STANDARD QTY - ACTUAL QTY USED )
= 40 ((100*50) - 4900)
=40 (5000 - 4900)
= 40 (100)
= 4000 (FAVOURABLE)
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