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Unit 9: Variance Analysis
10. For producing one unit of a product, the materials standard is: Notes
Material X: 6 kg. @ ` 8 per kg., and Material Y: 4 kg. @ ` 10 per kg.
In a week, 1,000 units were produced the actual consumption of materials was:
Material X: 5,900 kg. @ ` 9 kg., and Material Y: 4,800 kg. @ ` 9.50 per kg.
Compute the various variances.
Answers: Self Assessment
1. adverse or unfavourable 2. favourable variance
3. standard costing 4. standard cost
5. cost control 6. (b)
7. (d) 8. (d)
9. (c) 10. (c)
11. (c) 12. (d)
13. (a) 14. (b)
15. (b)
9.6 Further Readings
Books B.M. Lall Nigam and I.C. Jain, Cost Accounting, Prentice-Hall of India (P) Ltd.
Hilton, Maher and Selto, Cost Management, 2nd Edition, Tata McGraw-Hill
Publishing Company Ltd.
M.N. Arora, Cost and Management Accounting, 8th Edition, Vikas Publishing
House (P) Ltd.
M.P. Pandikumar, Management Accounting, Excel Books.
Online links www.allinterview.com
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