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April 2008 (10 marks) From the following particulars, calculate material and labour variance

April 2008 (10 marks) From the following particulars, calculate material and labour variance. Calculation of standard quantity for actual output 800*3. 1000. =2400. Calculation of actual quantity: 800*3.125 =2500. MCV=(SQ*SR)- (AQ*AR) =(2400*2)- (2500*2.50)

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April 2008 (10 marks) From the following particulars, calculate material and labour variance

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  1. April 2008 (10 marks) From the following particulars, calculate material and labour variance

  2. Calculation of standard quantity for actual output 800*3 1000 =2400 Calculation of actual quantity: 800*3.125 =2500

  3. MCV=(SQ*SR)- (AQ*AR) =(2400*2)- (2500*2.50) =4800-6250 =-1450 (ADVERSE) MPV=(SR-AR) * AQ = (2- 2.50) * 2500 =-0.50 * 2500 = -1250 (ADVERSE) MUV= (SQ- AQ) * SR = (2400-2500) * 2 = - 100 * 2 = - 200

  4. Calculation of std hours for actual output: 800*600 1000 = 480

  5. LCV=(SH*SR) –(AH*AR) =(480*3) – (400*2.50) = 1440 – 1000 = 440 (FAVOURABLE) LEV= (SH-AH) * SR = (480-400) * 3 = 80 * 3 = 240 (FAVOURABLE) LRV= (SR-AR) * AH = (3 -2.50) * 400 = 0.5 * 400 = 200 (FAVOURABLE)

  6. THANK YOU KAVYA DIANA SPN110309

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