Question

The standard quantity and standard price of raw materials required for one unit of product a are given as follows:

Material	Quantity	Selling price
X	2kg	$3 per kg
Y	4kg	$2 per kg

The actual production and relevant data are as follows: Output for product A is 500 units

Material	Total Quantity for 500 units	Total cost ($)
X	1,100kg	3410
Y	1,800kg	3960

Required: Calculate

1. Material cost variance
2. Material price variance
3. Material usage Variance
4. Material mixture variance
5. Material Yield variance

Answer 1

Answer
Working
Material	SQ	AQ
X	1000	1100
Y	2000	1800
Material	SP	AP
X	$         3.0	$         3.1
Y	$         2.0	$         2.2

A	Material cost variance
	Price Variance +Usage Variance
	470 A + 100 F
	370 A
B	Material price variance
	(SP-AP)*AQ
	X=(3-3.1)*1100 =110 A
	Y=(2-2.2)*1800 = 360 A
	Total = 470 A
C	Material usage Variance
	(SQ-AQ)*SP
	X=(1000-1100)*3 = 300 A
	Y=(2000-1800)*2 = 400 F
	Total = 100 F
D	Material mixture variance
	(SM-AM)*SP
	X=(966.67-1100)*3 = 399.99 A
	Y=(1933.33-1800)*2      = 266.66 F
	Total    = 133.33 A
E	Material Yield variance
	( SQ-SM)*SP
	X=(1000-966.67)*3 =99.99 F
	Y=(2000-1933.33)2 = 133.34 F
	Total = 233.33 F

Answer 2

I don't know

Answer 3

I don't know