Standard costing sums

Formula

1. Material cost variance (MCV) = Standard rate * Standard quantity - Actual rate * Actual quantity
Standard cost - Actual cost
SC - AC
2. Material Usage variance (MUV)= (Standard quanity - Actual quantity ) -*Standard rate
SQ - AQ * SR

3.( Material price variance (MPV)= Standard price - Actual price ) * Actual quantity
SP - AP * AQ

Verification
MCV = MPV + MUV

1. Labour cost variance (LCV) = Standard rate * Standard hours - Actual rate * Actual hours
SC - AC

2. Labour efficiency (LEV) = Standard hours - Actual hours * Standard rate

SH - AH * Sr

3. Labour rate variance (LRV ) = Standard rate - Actual rate * Actual hours
SR - AR * AH

Verification = LCV = LEV + LRV

Sum no 1.
From the following particulars calcuate all Material Variances :
Particulars
Material Standard Actual
(quantity) 1,000kg 900 kg
Price Rs. 12 per kg Rs. 16 per kg

Sum no 2

Calculate from the following all material variances

Standard for 25 units of product - R
Material 50kgs @RS. 25 per kg
Actual production - 20,000 units
Actual material used - 42,000 kgs
Actual rate - 24.50 per kg

Sum no 3.
standard - for 4 untis of product A
Material 14 kgs @ Rs . 12 per kg
Actual production - 21,000 untis
Actual material used - 74,000 kgs
Actual rate - 11. 80 per kg
Calculate material variances

Sum no 4
Calculate material variances from the following
Standard for 90 kgs of finished output
Material - 135 kgs @ Rs . 12 per kg
Actual production 81,000 kgs
Actual material used - 1,24,000 kgs
Cost of material used - 14,75,600

Sum no 5

A manufacturing concern which has adopted standard costing furnishes the following information
Standard material for 70kg finished products 100 kg
standard price of material Rs. 1 per kg
Actual otuput 2,10,000 kg
Actual material used 2,80,000 kg 0.9
Cost of material Rs. 2,52,000 300000
Calculate material usage variance
Material price variance and material cost variance

Sum no 6
For producing 80 units of a product 30 kg of material X and 20 kg of material Y is the standard requirement.
Standard price is RS. 6 per kg for X and RS. 10 per kg for Y
80 untis were actually produced using 50 kg of material X purchased for rs. 200 and 10 kg of material Y purchased at Rs. 8 per
Calculate all material variances

Sum no 7
From the following information calculate labour variances
Particulars Standard Actual
No. of hours per
unit 360 400
Rate per hour (RS) 1.5 1.4
Sum no 8
Standard for 100 units
500 Labour hours
Rate Rs. 25 per hour
Actual production - 1,000 units were produced
Total wages paid RS. 1,30,000 for 5,200 hours

Sum no 9
The following information is gathered from the labour records of Kt & Co 2.5
Payroll allocation of direct labour Rs. 20,000
Time card analysis shows that 8,000 hours were worked on production lines
Production reports for the period shows that 4,000 units have been completed each having standard
labour time for 1 1/2 hours and standard labour rate @ Rs. 2 per hour
Calculate all labour variances

Sum no 10
From the following calcuate labour variances : 29400
Standard - for 2 units of output - 5 hours
Labour rate Rs. 10 per hour
Actual production - 1,000 units
Actual hours - 2,450 hours
Actual rate - 12 per hour

Sum no 11
Calcuate labour variances from the following information : -
Standard hours for 4 units - 24 hours
Standard rate - Rs. 18 per unit
Actual production - 1,800 units 432
Actual hours - 10,500 hours 32550
Actual rate - Rs. 3.10 per hour 194400

Sum no 12
From the following calculate all labour variances
Standard hours for 6 units - 42 hours
Standard rate per unit - Rs. 5.60 235.2
Actual production - 2,100 units 12325
Actual hours - 14,500 hours 11760
Actual rate per hour - Rs. 0.85 -565
160
Sum no 13
Standard hour per unit - 12 hours
Standard rate - 5 per hour
Actual production - 1,600 units
Actual hours - 19,800 hours
Actual rate - Rs. 4.85 per hour

Sum no 14
Calculate all labour variances form the following data:
Particulars Standard Actual
Hours Hourly rate Hours Hourly rate
Skilled labour 2,880 20 1,760 25
Semi - skilled
labour 1,920 10 2,640 5
Total 4,800 4,400
Output 108 kg 90kg

Sum no 15
Calculate material and labour variances from the following data:
For 5 units of product A the standard Data are:
Material 40 kg @ Rs. 25 per kg
Labour 100 hours @ Rs. 2.5 per hour
Actual data are :
Actual production - 1,000 kgs
Material 7,840 kg @ Rs. 27 per kg
Labour 19,800 hours @ Rs. 2.6 per hour

Sum no 16
Calculate material and labour variance from the following data:
Standard (Per unit)
Material 6 kg @ Rs. 4 per kg
Labour 4 hours @ Rs. 4 per hour 351000
Actual production for the month 12,500 units 168000
Acutal material price per kg Rs. 4.50 75000
Actual material used during the month - 78,000 kg 50000
Direct labour hours workded - 48,000 hours 300000
Actual wages rate per hour - Rs. 3.5

Sum no 17
From the following details calculate labour and material variances
Standard :
For 10 units of Product Y
Material 80 kg @ Rs. 25per kg
Labour - 200 hours @ 2.5 per hour
Actual:
For 2000 units of product Y
Material 15,680 kg @ 28per kg
Labour - Rs. 1,02,960
Labour rate per hour - Rs. 2.60

Test of standard costing

The standard cost card for one unit of a product shows the following cost of materials and labour
Material - 4 pieces @ Rs. 5
Labour - 10 hours @ Rs. 1.5
5700 actual units were manufactured
Material - 23,000 pieces @ Rs. 4.95
Labour - 56,800 hours @ Rs. 1.52
Calculate all material and labour variances
1 unit 5,700 units
Standard quantity Standard rate Standard cost Actual quantity Actual rate Actual cost
Material :
4 5 20 23000 4.95 113,850
Labour :
10 1.5 15 56,800 1.52 86,336
Adjusted information :
Material
22,800 5 114,000 23000 4.95 113,850
Labour
57,000 1.5 85,500 56,800 1.52 86,336
Material cost variance 150(F) SC - AC
Material price variance 1150(F) (SR - AR) * AQ
Material usage variance 1000(A) (SQ - AQ)* SR
Verification MCV = MPV + MUV 150(F) = 1150(F) + 1000(A)
Labour cost variance 836(A)
Labour rate variance 1136(A)
Labour efficiency variance 300(F)
Y purchased at Rs. 8 per kg
Sum no 1

Calculate material variances

Name of the material Standard Actual
Qty Price Qty Price
A 3500 10 3700 12
B 1500 21 1650 20
C 1000 33 1250 36

Sum no 2
Calculate all Labour variances
The standard labour hours and rate of payment per article A are as follows:
Particulars Hours Rate per hour
Skilled labour 10 3
Semi skilled labour 8 1.5
Unskilled labour 15 1
The actual production was 1,000 articles of A for which the actual hours worked and rates are given as follows :
Particulars Hours Rate per hour
Skilled labour 9,000 4
Semi skilled labour 8,400 1.5
Unskilled labour 20,000 0.9

Sum no 3
Calculate material and labour variances from the following data :

For 10 units of product A the standard data are :

Material 50 kg @ Rs. 25 per kg
Labour 200 hours @ RS . 2.5 per hour

Actual data
Actual production - 1500 units
Material 7840 kg @ Rs. 27
Labour 19800 hours @ 2.6 per hour

Calculate all material and labour variances

e given as follows :
Sum no 1

Standard Standard Standard Actual Actual Actual

Particulars quantity rate Cost quantity rate cost
1,000 12 12,000 900 16 14,400

Standard cost = standard quantity * Standard rate

1000 * 12 = 12,000

Actual cost = Actual quantity * Actual rate

900 * 16
14,400

1. Material cost variance (MCV) = Standard cost - Actual Cost

12,000 - 14,400
2,400 (A)
A stands for adverse

2. Material Usage variance (MUV)= (Standard quanity - Actual quantity ) *Standard rate
SQ - AQ * SR
(1,000 - 900)*12
100 * 12
1,200(F)
F stands for Favourable

3.Material price variance (MPV)= Standard price - Actual price ) * Actual quantity
SR - AR * AQ
12 - 16 * 900
3600 (A)

Verification
MCV = MPV + MUV
2400 (A) = 3600(A) + 1200(F)
(2400) = (3600) + 1200
(2400)=(2400)

Sum no 2
25 units 20,000 units Working note
Standard Standard Standard Actual Actual Actual
Particulars quantity rate Cost quantity rate cost
50 25 1,250 42,000 24.5 1,029,000 25 units
20,000 units 50
40,000 25 1,000,000 20000* 50/25
 1,000,000
1. Material cost variance (MCV) = SC - AC
10,00,000 - 10,29,000
29,000 (A)

2. Material Usage variance (MUV)= (SQ - AQ) * SR

40,000 - 42,000 * 25
50,000 (A)

3.Material price variance (MPV)= (SR - AR) * AQ

25 - 24 .5 * 42,000
0.5*42000
21000(F)

Verification
MCV = MPV + MUV
29000 (A) = 21,000 (F) + 50,000 (A)

Sum no 3
4 units 21,000 units Working note (standard )
Standard Standard Standard Actual Actual Actual
Particulars quantity rate Cost quantity rate cost units 4
14 12 168 74,000 11.8 873,200 Quantity 14
Cross
21,000 units multiply 14*21000/4
73,500 12 882,000 73500

1. Material cost variance (MCV) = Standard cost - Actual cost

8,82,000 - 8,73,200
8,800 (F)

2. Material Usage variance (MUV)= Standard quantity - Actual quantity * Standard Rate
73,500- 74,000 * 12
6,000 (A)

3.Material price variance (MPV)= Standard rate - Actual rate * Actual quantity
12 - 11. 8 * 74,000
0.2*74,000
14,800 (F)

Verification
MCV = MPV + MUV
8,800 (F) = 6,000 (A) + 14,800 (F)

Sum no 4
 90 kgs 81,000kgs Working note (standard )
Standard Standard Standard Actual Actual Actual
Particulars quantity rate Cost quantity rate cost units 90
135 12 1,620 124,000 11.9 1,475,600 Quantity 135
81,000 kgs 135*81000/90
121,500 12 1,458,000 121,500

1. Material cost variance (MCV) = Standard cost - Actual cost

14,58,000 - 14,75,600
17,600 (A)

2. Material Usage variance (MUV)= Standard quantity - Actual quantity * Standard Rate
1,21,500 - 1,24,000 * 12
30,000 (A)

3.Material price variance (MPV)= Standard rate - Actual rate * Actual quantity
12-11.9*124000
12,400 (F)

Verification
MCV = MPV + MUV
17,600 (A) = 30,000(A) + 12,400(F)
L.H.S. = R.H.S.

Sum no 6 80 units 80 units

Standard Standard Standard Actual Actual Actual
Particulars quantity rate Cost quantity rate cost
X 30 6 180 50 4 200
Y 20 10 200 10 8 80

1. Material cost variance (MCV) = Sc- Ac

X 180 - 200 20(A)
Y 200 - 80 120(F)
Total 100 (F)
2. Material Usage variance (MUV)= (SQ - AQ) * Sr
X (30 - 50) * 6 120(A)
Y (20-10)*10 100 (F)
Total 20(A)
3.Material price variance (MPV)= (SR - AR)* AQ
X (6-4) * 50 100 (F)
Y (10-8) * 10 20 (F)
Total 120(F)
Verification
MCV = MPV + MUV
100 (F) = 20 (A) + 120 (F)
L.H.S. = R.H.S.
Sum no 5
70 kg 210,000 Working note (standard )
Standard Standard Standard Actual Actual Actual
Particulars quantity rate Cost quantity rate cost units 70
100 1 100 280,000 0.9 252,000 Quantity 100
2,10,000 kg 2,10,000*100/70
300,000 1 300,000 300,000

1. Material cost variance (MCV) = SC - AC = 3,00,000 - 2,52,000

48,000 (F)
2. Material usage variance (MUV) = (SQ - AQ) * SR = 3,00,000 - 2,80,000 * 1
20,000 (F)
3. Material price variance (MPV) = (SR - AR) * AQ = 1-0.9*2,80,000
28,000 (F)
Verification = MCV = MUV + MPV
48000 (F) = 20000(F) + 28000(F)
L.H.S. = R.H.S.

Sum no 7

Standard Standard Standard Actual Actual Actual

Particulars hours rate Cost hours rate cost
360 1.5 540 400 1.4 560

1. Labour cost variance = SC - AC = 540 - 560.

20 (A)

2. Labour Efficiency Variance = Standard hours - Actual hours * Standard rate

360 - 400 * 1.5
60 (A)
3. Labour rate variancce = Standard rate - Actual rate * Actual hours
1.5 - 1.4 * 400
40 (F)
Verification = LCV = LEV + LRV
20 (A) = 60 (A) + 40 (F)
L.H.S = R.H.S

Sum no 8
100 units 1,000 units Working note (standard )
Standard Standard Standard Actual Actual Actual
Particulars hours rate Cost hours rate cost units 100
500 25 12,500 5,200 25 130,000 hours 500
1,000 units 1000*500/100
 5,000 25 125,000 5,000
1. Labour cost variance (LCV) = SC - AC = 125000-130000
5000 (A)
2. Labour Efficiency Variance (LEV) = (SH - AH) * SR = 5,000 - 5200 * 25
5000(A)
3. Labour Rate Variance (LRV) = (SR - AR) * AH = (25 - 25) * 5,200
0
Verificationn = LCV = LEV + LRV
5000 (A) = 5000 (A) + 0
L.H.S = R.H.S.
sum no 9

Standard Standard Standard Actual Actual Actual

Particulars hours rate Cost hours rate cost
6,000 2 12,000 8,000 2.5 20,000
(4000*1.5)

1. Labour cost variance (LCV) = SC - AC = 12000 - 20000

8000(A)
2. Labour Efficiency Variance (LEV) = (SH - AH) * SR =(6000-8000)*2
4000 (A)
3. Labour Rate Variance (LRV) = (SR - AR) * AH = ( 2 - 2.5) * 8000
4000 (A)
Verificationn = LCV = LEV + LRV
8000 (A) = 4000 (A) + 4000 (A)
L.H.S. = R.H.S.

Sum no 10
2 units 1,000 units Working note (standard )
Standard Standard Standard Actual Actual Actual
Particulars hours rate Cost hours rate cost units 2
5 10 50 2,450 12 29,400 Hours 5
1,000 units 1000*5/2
2,500 10 25,000 2,500

1. LCV = SC - AC = 25,000 - 29400

4,400(A) Verification
2. LEV = (SH - AH) * SR = (2,500 - 2,450 ) * 10 LCV = LRV + LEV
500(F) 4,400 (A) = 4,900 (A) + 500(F)
3. LRV = (SR - AR) * AH = (10-12)*2450 L.H.S. = R.H.S
4,900(A)
Sum no 11
4 units 1,800 units Working note (standard )
Standard Standard Standard Actual Actual Actual
Particulars hours rate Cost hours rate cost units 4
24 18 432 10,500 3.1 32,550 hours 24
1,800 24*1800/4
10,800 3 32,400 10,800

1. LCV = SC - AC = 32400-32550 Verification Standard rate = standard hours / standard

150(A) LCV = LRV + LEV
2. LEV = (SH - AH) * SR = (10,800-10,500) * 3 150(A) = 900(F) + 1050 (A) Standard rate for 4 units
900(F) L.H.S. = R.H.S. Standard rate per unit = 18 / 6
3. LRV = (SR - AR) * AH = (3-3.1)*10500
1050(A) 1050

Sum no 12
6 units 2,100 units Working note (standard )
Standard Standard Standard Actual Actual Actual
Particulars hours rate Cost hours rate cost units 6
42 5.6 235 14,500 0.85 12,325 hours 42
2,100 units 42*2100/6
14,700 0.8 11,760 14,700

1. Labour cost variance (LCV) = SC - AC units per hour = 42/6 = 7

11760-12325 rate per hour = 5.6/7
565(A) 0.8
2. Labour Efficiency variance (LEV) = (SH - AH) * SR Verification
(14700-14500)*0.8 LCV = LRV + LEV
160(F) 565(A) = 725(A) + 160(F)
3. Labour Rate Varaince (LRV) = (SR - AR) * AH L.H.S. R.H.S.
0.8-0.85*14500
725(A)

Sum no 13
1 unit 1,600 units Working note (standard )
Standard Standard Standard Actual Actual Actual
Particulars hours rate Cost hours rate cost units 1
12 5 60 19,800 4.85 96,030 hours 12
1,600 units 1600*12/1
19,200 5 96,000 19,200
1. Labour cost variance (LCV) = SC - AC = 96000-96030 = 30(A) Verification = LCV = LRV + LEV
2. Labour efficiency variance (LEV) = (SH-AH)* SR = (19200-19800)*5 30(A) = 3000(A)+2970(F)
3000(A) L.H.S=R.H.S
3. Labour rate variance (LRV) = (SR - AR) * AH = (5-4.85)*19800
2,970(F)
Solution
Sum 14

Given information
108 kg 90kg Working note skilled labour standard
Standard Standard Standard Actual Actual Actual
Particulars hours rate Cost hours rate cost kg 90
Skilled 2,880 20 57,600 1,760 25 44,000 ?
Semi skilled 1,920 10 19,200 2,640 5 13,200 90*2880/108
Adjusted information : 2,400
90kg 90kg
Skilled 2,400 20 48,000 1,760 25 44,000 Working note semi skilled labour standard
Semi skilled 1,600 10 16,000 2,640 5 13,200 kg 90
1. Labour cost variance (LCV) = SC- AC ?
Skilled labour 48000-44000 4000(F) 1920*90/108
Semi skilled labour 16000-13200 2800(F) 1600
Total 6800(F)
Verification
2. Labour rate variance (LRV) = (SR - AR) * AH LCV = LRV + LEV
Skilled labour (20-25)*1760 8800(A) 6800(F) = 4400(F) + 2400(F)
Semi skilled labour (10-5)*2640 13200(F) L.H.S. = R.H.S.
Total 4400(F)

3. Labour efficiency variance (LEV) = (SH - AH) * SR 8800

Skilled labour (2400-1760)*20 12,800(F) 13200
Semi skilled labour (1600-2640)*10 10,400(A) 4400
Total 2400(F)

Sum no 15
5 units 1,000kgs Working note
Standard/ Actual
quantity Standard Standard Quantity / Actual Actual
Particulars hours rate Cost hours rate cost Material
Material 40 25 1,000 7,840 27 211,680 Units 5
Labour 100 2.5 250 19,800 2.6 51,480 40
Adjusted information :
1,000 kgs 1,000 kgs
Material 8,000 25 200,000 7,840 27 211,680
Labour 20,000 2.5 50,000 19,800 2.6 51,480 Labour
Material cost variance (MCV) = SC - AC = 2,00,000 - 2,11,680 = 11,680(A) units 5
Material price variance (MPV) = (SR-AR)*AQ = (25-27)*7840 = 15,680(A) 100
Material usage variance(MUV)=(SQ-AQ)*SR = (8,000-7840)*25 = 4,000(F)
Verification = MCV=MPV+MUV = 11680(A)=15,680(A)+4,000(F) = L.H.S. = R.H.S.
Labour cost variance (LCV) = SC -AC= 50,000-51,480 = 1,480(A)
Labour rate variance (LRV)=(SR-AR)*AH = (2.5-2.6)*19800 = 1980(A)
Labour efficiency variance(LEV)= (SH-AH)*SR = (20000-19800)*2.5 = 500(F)
Verification = LCV=LRV+LEV= 1480(A)= 1980(A)+500(F) = L.H.S. = R.H.S.

Sum no 16

12,500 units 12,500 units Working note

Standard/ Actual
quantity Standard Standard Quantity / Actual Actual
Particulars hours rate Cost hours rate cost Standard quantity = 12500*6
Material 75,000 4 300,000 78,000 4.5 351,000 Standard labour hours = 12500*4 = 78,000
Labour 50,000 4 200,000 48,000 3.5 168,000 Verification = MCV = MRV + MUV
1. Material cost variance (MCV) = SC - AC = 3,00,000 - 351,000 51000(A) 51000(A)= 39000(A)+12000(A)
2. Material rate variance (MRV) = (SR- AR) * AQ = (4-4.5)* 78000 39000(A) L.H.S.= R.H.S
3. Material usage variance (MUV) = (SQ-AQ)* SR = (75,000-78000)*4 12,000(A)
1. Labour cost variance (LCV) = SC- AC = 2,00,000 - 1,68,000 32000(F) Verification = LCV = LRV + LEV
2. Labour rate variance (LRV) = (SR - AR) * AH = (4-3.5)*48000 24000(F) 32000(F)= 24000(F)+8000(F)
3. Labour efficiency variance(LEV) = (SH-AH)*SR = (50000-48000)*4 8000(F) L.H.S. = R.H.S.

Sum no 17

10 units 2,000 units Working note

Standard/ Actual
quantity Standard Standard Quantity / Actual Actual
Particulars hours rate Cost hours rate cost untis 10
Material 80 25 2,000 15,680 28 439,040 quantity 80
Labour 200 2.5 500 39,600 2.6 102,960 80*2000/10
Adjusted information : 16000
2,000 units 2,000 units
Material 16,000 25 400,000 15,680 28 439,040 units 10
Labour 40,000 2.5 100,000 39,600 2.6 102,960 Hours 200
200*2000/10
1. Material cost variance = SC - AC 4,00,000-4,39,040 39,040(A) 40000
2. Material price variance = (SR-AR) * AQ (25-28)*15680 47,040(A)
3. Material usage variance = (SQ- AQ) * SR (16000-15680)*25 8000(F)

1. Labour cost Variance = SC-Ac 100000-102960 2,960(A)

2. Labour rate variance =(SR-AR)*AH (2.5-2.6)*39600 3960(A)
3. Labour efficiency variance = (SH-AH)*SR (40000-39600)*2.5 1000(F)

Verification Verification
MCV = MPV + MUV LCV = LRV + LEV
39,040(A) = 47,040(A) + 8000(F) 2960(A) = 3960(A) + 1000(F)
L.H.S. = R.H.S. L.H.S. = R.H.S.
Working note

20,000 units

20000* 50/25
ote (standard )

21,000
?

14*21000/4
73500
ote (standard )

81,000
?
135*81000/90
121,500
ote (standard )

210,000
?
2,10,000*100/70
300,000

ote (standard )

1,000
?
1000*500/100
 5,000

ote (standard )

1,000
?
1000*5/2
2,500
ote (standard )

1,800
?
24*1800/4
10,800

ate = standard hours / standard unit

Twenty four / four
ate for 4 units 6
ate per unit = 18 / 6
3

ote (standard )

2,100
?
42*2100/6
14,700

our = 42/6 = 7

ote (standard )

1,600
?
1600*12/1
19,200
n = LCV = LRV + LEV
00(A)+2970(F)
ote skilled labour standard

108
2,880
90*2880/108

ote semi skilled labour standard

108
1,920
1920*90/108

12800
10400

1,000
?
1000*40/5
8000

1,000
?
100*1000/5
20000
quantity = 12500*6 75,000
abour hours = 12500*4 = 78,000
n = MCV = MRV + MUV
51000(A)= 39000(A)+12000(A)
L.H.S.= R.H.S

n = LCV = LRV + LEV

32000(F)= 24000(F)+8000(F)
L.H.S. = R.H.S.

2,000?

80*2000/10

2000
?
200*2000/10
Sum no 1

Standard Standard Standard Actual Actual Actual

Particulars quantity rate Cost quantity rate cost
1,000 12 12,000 900 16 14,400

Standard cost = standard quantity * Standard rate

1000 * 12 = 12,000

Actual cost = Actual quantity * Actual rate

900 * 16
14,400

1. Material cost variance (MCV) = Standard cost - Actual Cost

12,000 - 14,400
2,400 (A)
A stands for adverse

2. Material Usage variance (MUV)= (Standard quanity - Actual quantity ) *Standard rate
SQ - AQ * SR
(1,000 - 900)*12
100 * 12
1,200(F)
F stands for Favourable

3.Material price variance (MPV)= Standard price - Actual price ) * Actual quantity
SR - AR * AQ
12 - 16 * 900
3600 (A)

Verification
MCV = MPV + MUV
2400 (A) = 3600(A) + 1200(F)
(2400) = (3600) + 1200
(2400)=(2400)

Sum no 2
25 units 20,000 units Working note
Standard Standard Standard Actual Actual Actual
Particulars quantity rate Cost quantity rate cost
50 25 1,250 42,000 24.5 1,029,000 25 units 20,000 units
20,000 units 50
40,000 25 1,000,000 20000* 50/25
 1,000,000
1. Material cost variance (MCV) = SC - AC
10,00,000 - 10,29,000
29,000 (A)

2. Material Usage variance (MUV)= (SQ - AQ) * SR

40,000 - 42,000 * 25
50,000 (A)

3.Material price variance (MPV)= (SR - AR) * AQ

25 - 24 .5 * 42,000
0.5*42000
21000(F)

Verification
MCV = MPV + MUV
29000 (A) = 21,000 (F) + 50,000 (A)

Sum no 3
4 units 21,000 units Working note (standard )
Standard Standard Standard Actual Actual Actual
Particulars quantity rate Cost quantity rate cost units 4 21,000
14 12 168 74,000 11.8 873,200 Quantity 14 ?
Cross
21,000 units multiply 14*21000/4
73,500 12 882,000 73500

1. Material cost variance (MCV) = Standard cost - Actual cost

8,82,000 - 8,73,200
8,800 (F)

2. Material Usage variance (MUV)= Standard quantity - Actual quantity * Standard Rate
73,500- 74,000 * 12
6,000 (A)

3.Material price variance (MPV)= Standard rate - Actual rate * Actual quantity
12 - 11. 8 * 74,000
0.2*74,000
14,800 (F)

Verification
MCV = MPV + MUV
8,800 (F) = 6,000 (A) + 14,800 (F)

Sum no 4
 90 kgs 81,000kgs Working note (standard )
Standard Standard Standard Actual Actual Actual
Particulars quantity rate Cost quantity rate cost units 90 81,000
135 12 1,620 124,000 11.9 1,475,600 Quantity 135 ?
81,000 kgs 135*81000/90
121,500 12 1,458,000 121,500

1. Material cost variance (MCV) = Standard cost - Actual cost

14,58,000 - 14,75,600
17,600 (A)

2. Material Usage variance (MUV)= Standard quantity - Actual quantity * Standard Rate
1,21,500 - 1,24,000 * 12
30,000 (A)

3.Material price variance (MPV)= Standard rate - Actual rate * Actual quantity
12-11.9*124000
12,400 (F)

Verification
MCV = MPV + MUV
17,600 (A) = 30,000(A) + 12,400(F)
L.H.S. = R.H.S.

Sum no 6 80 units 80 units

Standard Standard Standard Actual Actual Actual
Particulars quantity rate Cost quantity rate cost
X 30 6 180 50 4 200
Y 20 10 200 10 8 80

1. Material cost variance (MCV) = Sc- Ac

X 180 - 200 20(A)
Y 200 - 80 120(F)
Total 100 (F)
2. Material Usage variance (MUV)= (SQ - AQ) * Sr
X (30 - 50) * 120(A)
Y (20-10)*10100 (F)
Total 20(A)
3.Material price variance (MPV)= (SR - AR)* AQ
X (6-4) * 50 100 (F)
Y (10-8) * 10 20 (F)
Total 120(F)
Verification
MCV = MPV + MUV
100 (F) = 20 (A) + 120 (F)
L.H.S. = R.H.S.
Sum no 5
70 kg 210,000 Working note (standard )
Standard Standard Standard Actual Actual Actual
Particulars quantity rate Cost quantity rate cost units 70 210,000
100 1 100 280,000 0.9 252,000 Quantity 100 ?
2,10,000 kg 2,10,000*100/70
300,000 1 300,000 300,000

1. Material cost variance (MCV) = SC - AC = 3,00,000 - 2,52,000

48,000 (F)
2. Material usage variance (MUV) = (SQ - AQ) * SR = 3,00,000 - 2,80,000 * 1
20,000 (F)
3. Material price variance (MPV) = (SR - AR) * AQ = 1-0.9*2,80,000
28,000 (F)
Verification = MCV = MUV + MPV
48000 (F) = 20000(F) + 28000(F)
L.H.S. = R.H.S.

Sum no 7

Standard Standard Standard Actual Actual Actual

Particulars hours rate Cost hours rate cost
360 1.5 540 400 1.4 560

1. Labour cost variance = SC - AC = 540 - 560.

20 (A)

2. Labour Efficiency Variance = Standard hours - Actual hours * Standard rate

360 - 400 * 1.5
60 (A)
3. Labour rate variancce = Standard rate - Actual rate * Actual hours
1.5 - 1.4 * 400
40 (F)
Verification = LCV = LEV + LRV
20 (A) = 60 (A) + 40 (F)
L.H.S = R.H.S

Sum no 8
100 units 1,000 units Working note (standard )
Standard Standard Standard Actual Actual Actual
Particulars hours rate Cost hours rate cost units 100 1,000
500 25 12,500 5,200 25 130,000 hours 500 ?
1,000 units 1000*500/100
 5,000 25 125,000 5,000
1. Labour cost variance (LCV) = SC - AC = 125000-130000
5000 (A)
2. Labour Efficiency Variance (LEV) = (SH - AH) * SR = 5,000 - 5200 * 25
5000(A)
3. Labour Rate Variance (LRV) = (SR - AR) * AH = (25 - 25) * 5,200
0
Verificationn = LCV = LEV + LRV
5000 (A) = 5000 (A) + 0
L.H.S = R.H.S.

Sum 9
Standard hours = 4000 * 1.5
Standard Standard Standard Actual Actual Actual
Particulars hours rate Cost hours rate cost 6000
6,000 2 12,000 8,000 2.5 20,000 Verification
1. Labour cost variance = SC - AC = 12000- 20000 = 8000 (A) LCV = LRV + LEV
2. Labour efficiency variance = (SH - AH) * SR = (6000 - 8000)*2 = 4000(A) 8000(A)= 4000(A)+4000(A)
3. Labour rate variance = (SR - AR)* AH = (2-2.5)* 8000 = 4000(A) L.H.S.=R.H.S

Sum no 10
2 units 1,000 units Working note (standard )
Standard Standard Standard Actual Actual Actual
Particulars hours rate Cost hours rate cost units 2 1,000
5 10 50 2,450 12 29,400 hours 5?
1,000 units 5*1000/2
2,500 10 25,000 2,500
1. Labour cost variance = SC - AC = 25000-29400 = 4400(A)
2.Labour rate variance = (SR-AR)*AH=(10-12)*2450 = 4900(A)
3.Labour Efficiency variance= (SH-AH)*SR=(2500-2450)*10=500(F)
Verification = LCV= LRV+LEV
4400(A)= 4900(A)+500(F)
L.H.S.=R.H.S.

Sum no 11
4 units 1,800 units Working note (standard )
Standard Standard Standard Actual Actual Actual
Particulars hours rate Cost hours rate cost units 4 1,800
24 hours 18 per unit 432 10,500 3.1 32,550 24 ?
1,800 units 24*1800/4
10,800 3 32,400 10,800
Standard rate per hour
1. Labour cost variance = SC-AC = 32400-32550 = 150(A) per unit = 24/4 = 6 hours
2. Labour rate variance = (SR-AR)*AH = (3-3.1)*10,500 = 1050(A) per hour = 18/6 = 3
3. Labour efficiency variance = (SH-AH)*SR= (10,800-10,500)*3 = 900(F)
Verification = LCV = LRV+LEV
150(A)=1050(A)+900(F)
L.H.S.=R.H.S

Sum no 12

6 units 2,100 units Working note (standard )

Standard Standard Standard Actual Actual Actual
Particulars hours rate Cost hours rate cost units 6 2,100
42 5.60p.u. 235 14,500 0.85 12,325 42 ?
2,100 units 2100*42/6
14,700 0.8 11,760 14,700
1. Labour cost variance (LCV) = SC - AC = 11760 - 12325 = 565 (A)
2. Labour rate variance (LRV) = (SR-AR)* AH = (0.8-0.85)*14500 = 725(A) Standard rate per hour
3. Labour efficiency variance (LEV) = (SH-AH)* SR = (14700-14500)*0.8 Per unit = 42/6 = 7
160(F) per hour = 5.60/7 = 0.8
Verification = LCV= LRV+LEV
565(A) = 752(A)+160(F)
L.H.S. = R.H.S.

Sum no 13

1 unit 1,600 units Working note (standard )

Standard Standard Standard Actual Actual Actual
Particulars hours rate Cost hours rate cost units 1 1,600
12 5 60 19,800 4.85 96,030 12 ?
1,600 units 12*1600/1
19,200 5 96,000 19,200
1. Labour cost variance = SC- AC = 96000-96030 = 30(A)
2. Labour rate variance = (SR-AR)*AH=(5-4.85)*19800 = 2970(F)
3. Labour efficiency variance = (SH-AH)*SR = (19200-19800)*5 = 3000(A)
Verification LCV=LRV+LEV
30(A)=2970(F)+3000(A)
L.H.S. = R.H.S.

Sum 14 Working note skilled labour standard

108 kg 90kg kg 108 90
Standard Standard Standard Actual Actual Actual
Particulars hours rate Cost hours rate cost 2880 ?
Skilled 2,880 20 57,600 1,760 25 44,000 2880*90/108
Semi skilled 1,920 10 19,200 2,640 5 13,200 2,400
Adjusted information :
90kg Working note semi skilled labour standard
Skilled 2,400 20 48,000 kg 108 90
Semi skilled 1,600 10 16,000 1920 ?
1920*90/108
1,600

1. Labour cost variance (LCV) = SC- AC ?

Skilled labour 48000-44000 4000(F) 1920*90/108
Semi skilled labour 16000-13200 2800(F) 1600
Total 6800(F)
Verification
2. Labour rate variance (LRV) = (SR - AR) * AH LCV = LRV + LEV
Skilled labour (20-25)*1760 8800(A) 6800(F) = 4400(F) + 2400(F)
Semi skilled labour (10-5)*2640 13200(F) L.H.S. = R.H.S.
Total 4400(F)

3. Labour efficiency variance (LEV) = (SH - AH) * SR

Skilled labour (2400-1760)*20 12800(F)
Semi skilled labour (1600-2640)*10 10,400(A)
Total 2400(F)

Sum no 15
5 units 1,000 units Working note on materials
Standard/ Actual
quantity Standard Standard Quantity / Actual Actual
Particulars hours rate Cost hours rate cost units 5 1000
Material 40 25 1,000 7,840 27 211,680 kgs 40 ?
Labour 100 2.5 250 19,800 2.6 51,480 40*1000/5
Adjusted information : 8000
1,000 units 1,000 units Working note on labour
Material 8,000 25 200,000 7,840 27 211,680 units 5 1,000
Labour 20,000 2.5 50,000 19,800 2.6 51,480 hours 100 ?
Material cost variance SC - AC 2,00,000 - 2,11,680 11,680(A) 100*1000/5
Material Rate variacne (SR - AR)*AQ 25-27*7840 15,680(A) 20000
Material usage variance (SQ-AQ)* SR 8000-7840*25 4000(F)
Verification MCV = MRV + MUV 11680(A)= 15680(A)+4000(F) L.H.S. = R.H.S.

Labour cost variance SC - AC 50,000 - 51,480 1,480(A)

Labour rate variance (SR-AR) * AH (2.5-2.6)*19800 1980(A)
Labour efficiency variance (SH-AH)* AR (20000-19800)*2.5 500(F)
Verification LCV = LRV + LEV 1480(A)=1980(A)+500(F) L.H.S. = R.H.S.

Sum no 17 Working note for material

units 10 2000
10 units 2,000 units Quantity 80 ?
 Standard/ Actual
quantity Standard Standard Quantity / Actual Actual 80*2000/
Particulars hours rate Cost hours rate cost 10
Material 80 25 2,000 15,680 28 439,040 16000
Labour 200 2.5 500 39,600 2.6 102,960 Working note for labour
Adjusted information : units 10 2000
2,000 units 2,000 units hours 200 ?
Material 16,000 25 400,000 15,680 28 439,040 200*2000/10
Labour 40,000 2.5 100,000 39,600 2.6 102,960 40000
Material cost variance SC - AC 400000-439040 39040(A)
Material rate variance (SR-AR)* AQ 25-28*15680 47,040(A)
Material efficiency variance (SQ-AQ)*SR 16000-15680*25 8000(F)
Verification MCV = MRV + MUV 39040(A) = 47040(A) + 8000(F) L.H.S. = R.H.S.

Labour cost variance (LCV) SC - AC 100000 - 102960 2960(A)

Labour rate Variance (LRV) (SR-AR)*AH 2.5-2.6*39600 3960(A)
Labour efficiency variance (LEV) (SH-AH)* SR 40000 - 39600*2.5 1000(F)
Verification LCV = LRV + LEV 2960(A)= 3960(A)+1000(F) L.H.S. = R.H.S.

Sum no 16
Working note
1 unit 12500 units units 1 12500
Standard/ Actual
quantity Standard Standard Quantity / Actual Actual
Particulars hours rate Cost hours rate cost Quantity 6?
Material 6 4 24 78,000 4.5 351,000 12500*6/1
Labour 4 4 16 48,000 3.5 168,000 75000
Adjusted information :
12500 units 12500 units working note
Material 75,000 4 300,000 78,000 4.5 351,000 hour 1 12500
Labour 50,000 4 200,000 48,000 3.5 168,000 4?
Material cost variance (MCV) SC - AC 3,00,000 - 3,51,000 51,000(A) 12500*4/1
Material price variance (MPV) (SR - AR)*AQ (4-4.5)*78000 50000
39000(A)
Material usage variance (MUV) (SQ-AQ)*SR (75000-78000)*4
12000(A)
Verification MCV = MPV + MUV 51000(A) = 39000(A) + 12000(A) L.H.S. = R.H.S

Labour cost variance SC - AC 200000-168000 32000(F)

Labour rate variance (SR - AR)*AH (4-3.5)*48000 24000(F)
Labour efficiency variance (SH-AH)*SR (50000-48000)*4 8000(F)
Verification LCV = LRV + LEV 32000(F)=24000(F)+8000(F) L.H.S. = R.H.S
20,000 units
abour standard

illed labour standard