Question:
Lodha Ltd has established the following standard mix for producing 9 gallons of Product P:
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|
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5 gallons of Material A @ Rs. 7 per gallon
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35
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3 gallons of Material B @ Rs. 5 per gallon
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15
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2 gallons of Material C @ Rs. 2 per gallon
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4
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54
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A standard loss of 10% of input is expected to occur. Actual input was as follows:
53,000 gallons of Material A @ Rs. 7 per gallon.
28,000 gallons of Material B @ Rs. 5.30 per gallon.
19,000 gallons of Material C @ Rs. 2.20 per gallon.
Actual output for a period was 92,700 gallons of Product P.
Compute the Material Variances.