Reference no: EM132515998
X limited is producing floor covers in roll of standard size measuring 3 m wide and 30 m long by feeding raw materials to a continuous process machine. Standard mixture fixed for a batch of 900 sq. m of floor cover is as follows:
2000 kg of material A at ' 1.00/kg
800 kg of material B at ' 1.50/kg
20 gallons of material C at ' 30/gallon
During the period, 1505 standard size rolls were produced from the material issued for 150 batches. The actual usage and cost of materials were:
3,00,500 kg of Material A at ' 1.10/kg
1,19,600 kg of Material B at '1.65/kg
3,100 gallons of material C at '29.50/gallon
Question 1: Present the figures to management showing the break-up of material cost variances arising during the period.
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