# Two or More Materials :: Losses : Material Variances : Problems and Solutions

# Problem 1

Material | Standard | Actual | |||||
---|---|---|---|---|---|---|---|

Usage kg. | Rate per kg. | Total | Usage kg. | Rate per kg. | Total | ||

P | 60 | 3 | 180 | 50 | 4 | 200 | |

Q | 40 | 7 | 280 | 35 | 6 | 210 | |

Gross Input | 100 | 460 | 85 | 410 | |||

Less: Normal loss | 10 | Less: Actual Loss | 7 | ||||

Output | 90 | 78 |

Solution [TMCV = + 11.33 ; TMPV = − 15; TMUV/TMQV = + 3.67; TMMV = − 4 ; TMYV/TMSUV = + 7.67;]

# Problem 2

Material | Standard | Actual | |||
---|---|---|---|---|---|

Tonnes | Rate | Tonnes | Rate | ||

P | 150 | 13 | 170 | 12 | |

Q | 80 | 8 | 55 | 9 | |

Gross Input | 250 | 225 | |||

Less:Loss | 25 | 18 | |||

Output | 225 | 207 |

**Solution**

[TMCV = − 152.20; TMPV = + 115; TMUV/TMQV = − 267.20; TMMV = − 319 ;

TMYV/TMSUV = − 51.80;]

# Problem 3

Material | Standard | Actual | |||||
---|---|---|---|---|---|---|---|

Quantity kg. | Rate per kg. | Amount | Quantity kg. | Rate per kg. | Amount | ||

F | 1,200 | 12 | 14,400 | 1,250 | 13 | 16,250 | |

G | 700 | 14 | 9,800 | 740 | 15 | 11,100 | |

H | 600 | 10 | 6,000 | 860 | 9 | 7,740 | |

Gross Input | 2,500 | 12.08 | 30,200 | 2,850 | 15.60 | 35,090 | |

Less:Wastage | 250 | 2 | 500 | 375 | ?? | ?? | |

Output | 2,250 | 13.20 | 29,700 | 2,475 | ?? | ?? |

**Solution**

[TMCV = − 1,870; TMPV = − 1,130;TMUV/TMQV = − 740; TMMV = + 468;TMYV/TMSUV = − 1,208; ]

# Problem 4

Material | Standard Mix | Actual Mix |
---|---|---|

Material A | 90 units costing 3,600 | 450 units costing 18,900 |

Material B | 60 units costing 1,800 | 300 units costing 10,500 |

Standard Loss allowed is 10% of input and standard rate of scrap realisation is 6 per unit. Actual output is 648 units.

**Solution**

[TMCV = − 3,480; TMPV = − 2,400; TMUV/TMQV = − 1,080; TMMV = Nil;TMYV/TMSUV = − 1,080; ]

# Problem 5

250 tons of material M @ 12,000 per ton

375 tons of material N @ 14,000 per ton

Standard yield is 80% of input.

Actual cost for a period is as under

255 tons of material M @ 11,000 per ton

370 tons of material N @ 15,000 per ton

Actual Yield is 525 tons

Compute Material Variances.

**Solution**

[TMCV = + 3,07,500; TMPV = − 1,15,000; TMUV/TMQV = + 4,22,500; TMMV = + 10,000;

TMYV/TMSUV = + 4,12,500; ]

# Problem 6

During a month, 170 kgs of Material A priced at 2.10 per kg and 150 kgs of Material B priced at 6.50 per kg were actually used and the output of the chemical was 242 kgs.

Find out the material variances.

**Solution**

[TMCV = − 117.16; TMPV = − 92; TMUV/TMQV = − 25.16; TMMV = + 45.12 ;

TMYV/TMSUV = − 70.28; ]

# Problem 7

Calculate all possible material variances.

**Solution**

[TMCV = − 1,85,300; TMPV = − 27,500;TMUV/TMQV = − 1,57,800; TMMV = − 17,000;

TMYV/TMSUV = − 1,40,800; ]

# Problem 8

35% Material A at 105 per kg

65% Material B at 136 per kg.

A standard loss of 5% is expected in production.

During a period there is used:

125 Kg of Material A at 127 per kg. and

275 kg. of Material B at 124 per kg.

The actual output was 342 kgs

Calculate Material Variances.

**Solution**

[TMCV = − 4,921; TMPV = + 550; TMUV/TMQV = − 5,471; TMMV = − 465 ;

TMYV/TMSUV = − 5,006;]

# Problem 9

X = 75 units at 15 paise per unit

Y = 80 units at 20 paise per unit

Z = 125 units at 20 paise per unit

Ten units of finished product should be obtained from the above mix. During the month of February, ten mixes were completed and the consumption was:

X = 660 units at 20 paise per unit

Y = 975 units at 15 paise per unit

Z = 885 units at 30 paise per unit

Actual output was 85 units

Calculate Material Variances.

**Solution**

[TMCV = − 99.63; TMPV = − 72.75; TMUV/TMQV = − 26.88; TMMV = − 0.75 ;

TMYV/TMSUV = − 26.13;]

# Problem 10

lbs | Materials | Price per lb |
---|---|---|

50 | X | 24 |

20 | Y | 20 |

30 | Z | 40 |

The standard loss in production is 10% of input. There is no scrap value. Actual production for a period was 7,290 lbs. of YN from 80 mixes. Actual purchases and consumption of material during the month were:

lbs | Materials | Price per lb |
---|---|---|

4,160 | X | 27.50 |

1,680 | Y | 18.75 |

2,560 | Z | 42.50 |

**Solution**

[TMCV = − 27,900; TMPV = − 18,860; TMUV/TMQV = − 9,040; TMMV = − 640 ;

TMYV/TMSUV = − 8,400; ]

# Problem 11

Standard Mix | ||||||
---|---|---|---|---|---|---|

Material | Quantity | Rate | Amount | |||

Units | /unit | |||||

A | 70 | 10 | 700 | |||

B | 30 | 15 | 450 | |||

100 | 1,150 | |||||

Loss: (15%) | 15 | – | – | |||

85 | 1,150 |

Actual results for a period: | ||||||
---|---|---|---|---|---|---|

Material | Quantity | Rate | Amount | |||

Units | /unit | |||||

A | 400 | 11 | 4,400 | |||

B | 200 | 16 | 3,200 | |||

600 | 7,600 | |||||

Loss: (10%) | 60 | |||||

540 | 7,600 |

Compute all the material variances

**Solution**

[TMCV = − 294.12; TMPV = − 600; TMUV/TMQV = + 305.88; TMMV = − 100 ;

TMYV/TMSUV = + 405.88; ]

# Problem 12

Material | Quantity (in Kg.) | Standard Rate per kg (in ) | ||
---|---|---|---|---|

P | 425 | 22 | ||

Q | 450 | 44 | ||

R | 225 | 56 | ||

Gross Input | 1,100 | |||

Less: Standard loss | 100 | |||

Standard output | 1,000 |

Actual production in a period was 20,000 kgs. Of the finished product for which the actual quantities of material used and the prices paid thereof are as under:

Material | Quantity Used (in Kg.) | Purchase Price per kg (in ) | ||
---|---|---|---|---|

P | 9,700 | 19 | ||

Q | 8,600 | 42 | ||

R | 4,800 | 60 |

Calculate the material variances.

**Solution**

[TMCV = + 1500; TMPV = + 27,100; TMUV/TMQV = − 25,600; TMMV = + 16,150 ;

TMYV/TMSUV = − 41,750; ]

# Problem 13

For making 10 kgs. Of Gemco, the standard material requirement is:

Material | Quantity Kgs. | Rate per Kg | ||
---|---|---|---|---|

A | 8 | 8.00 | ||

B | 4 | 3.00 |

During April 1988, 1,000 kgs. of Gemco were produced. The consumption of material is as under:

Material | Quantity kgs. | Rate per Kg | ||
---|---|---|---|---|

A | 750 | 7.50 | ||

B | 510 | 3.00 |

Calculate all possible material variances

**Solution**

[TMCV = + 445; TMPV = + 375; TMUV/TMQV = + 70; TMMV = + 450 ; TMYV/TMSUV = − 380; ]

# Problem 14

330 kg. Material X @ 12 per kg

275 kg. Material Y @ 8 per kg

495 kg. Material Z @ 6 per kg

During a month, 200 tonnes of material 'M' were produced by actually using:

70 tonnes Material X @ 11/- per kg

62 tonnes Material Y @ 9/- per kg

110 tonnes Material Z @ 6.40 per kg.

Calculate Material Variances

How do the Yield, Mix and the Price factors contribute to the variation in the actual cost of chemical D over the standard cost?

**Solution**

[TMCV = − 2,06,000; TMPV = − 36,000; TMUV/TMQV = − 1,70,000; TMMV = + 12,600 ;

TMYV/TMSUV = − 1,82,600; ]

# Problem 15

Raw Material | Standard | Actual | Quantity of Raw Materials purchased Kg. | |||||||
---|---|---|---|---|---|---|---|---|---|---|

Mix % | Price Per kg | Mix % | Price Per kg | |||||||

A | 50 | 20 | 60 | 21 | 5,000 | |||||

B | 30 | 10 | 20 | 8 | 2,000 | |||||

C | 20 | 5 | 20 | 6 | 1,200 |

Calculate the material variances

**Solution**

[TMCV = − 9,600; TMPV = − 2,600; TMUV/TMQV = − 7,000; TMMV = − 7,000;TMYV/TMSUV = Nil; ]

# Problem 16

Materials | Standard | Actual | ||
---|---|---|---|---|

Mix % | Price per kg | Mix % | Price per kg | |

Raw Material I Raw Material II Raw Material III | 50 30 20 | 40 20 10 | 60 20 20 | 42 16 12 |

Calculate all variances.

**Solution**

[TMCV = − 19,600; TMPV = − 5,600; TMUV/TMQV = − 14,000; TMMV = − 14,000;TMYV/TMSUV = Nil; ]

# Problem 17

Ingredients | Quantity inKg. | Price per kg. | Cost | ||||
---|---|---|---|---|---|---|---|

A | 800 | 2.50 | 2,000 | ||||

B | 200 | 4.00 | 800 | ||||

C | 200 | 1.00 | 200 | ||||

Input | 1,200 | 3,000 | = 2.50 per kg. | ||||

Output | 1,000 | 3,000 | = 3.00 per kg. |

Material records indicate:

Consumption in January | |
---|---|

A | 157,000 kg.@ 2.40 |

B | 38,000 kg.@ 4.40 |

C | 36,000 kg.@ 1.20 |

Actual finished production for the month of January is 200,000 kg

**Solution**

[TMCV = + 12,800; TMPV = − 6,700; TMUV/TMQV = + 19,500; TMMV = − 3,000;

TMYV/TMSUV = + 22,500; ]

# Problem 18

Material A 280 gms at 3.80 Material B 120 gms at 3.60 | Actual production was 369 gms |

you are required to calculate all possible material variances.

**Solution**

[TMCV = − 20; TMPV = − 16; TMUV/TMQV = − 4; TMMV = − 40;TMYV/TMSUV = + 36; ]

# Problem 19

S - 1,800 per tonne

B - 1,200 per tonne

During a particular period, for an output of 500 tonnes of Alloy, the actual consumption was:

S - 350 tonnes @ 2,000 per tonne

B - 193 tonnes @ 1,100 per tonne

You are required to calculate all possible material variances.

**Solution**

[TMCV = − 70,194.73; TMPV = − 50,700; TMUV/TMQV = − 19,494.73; TMMV = + 7,200;

TMYV/TMSUV = − 26,694.73; ]