Solution-Calculate the Material Usage Variance

Calculate the Material Usage Variance

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Reference no: EM132952050

Question - For making 10 kg. of yarn, the standard material requirement rates are:

Material Quantity = 4 kg Rate per kg. = Rs. 3.00.

In a month, 2,000 kg. of yarn was produced. The actual consumption of materials is as under: Material Quantity = 700 kg Rate per kg. = Rs. 4.00

(a) Calculate the Material Usage Variance?

(b) Calculate the Material Price Variance?

Give reasons for your answer. Discuss how the management can remedy the unfavorable variances.

Reference no: EM132952050

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Calculate the Material Usage Variance

Reference no: EM132952050

Reference no: EM132952050

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