CS-54 Finance & Accounting On Computers Dec- 2002
Q.4. A manufacturing concern which has adopted standard costing, furnishes the following information:
Standard:
Materials for 70 units of finished product 100 kg
Price of material per kg Re. 1
Actual:
Output 2,10,000 units
Materials used 2.80,000 kg
Cost of Materials Rs. 2,52,000
Calculate Material Usage Variance, Material Price Variance and Material Cost Variance. Also state the possible causes of Material Usage Variance.

