The Cost Accountant of AQ Limited has provided the following information for investigation of variances: Material Cost Variance 4,220 (F) Material…
CA Intermediate · Cost and Management Accounting · PYQS · September 2025
The Cost Accountant of AQ Limited has provided the following information for investigation of variances: Material Cost Variance 4,220 (F) Material Usage Variance 18,540 (A) Material Yield Variance 8,390 (F) The Management Accountant is not able to comment on the reason of variances as information is not sufficient and seeks your help to find out the correct amount of Material Price Variance and Material Mix Variance. What is the correct amount of Material Price Variance (MPV) and Material Mix Variance (MMV)?
Suggested Answer and Working Notes:
Correct Answer: Option (D)
MPV - 22,760 (F) and MMV - 26,930 (A)
Topics: Standard Costing, Material Cost
Related Questions in this Topic
- ABC Manufacturing Ltd. is a medium-sized manufacturing company engaged in the production of a single industrial componen...
- Standard costs, marginal costs are some of the types of cost which helps the management in decision making. DISCUSS any ...
- Following is the standard cost card of a component: Martials 2 Units at ₹ 15 ₹30 Labour 3 Hours at ₹ 20 ₹60...
- Astra Components Pvt. Ltd. is a Tier-2 supplier to the electrical vehicle (EV) industry. The company manufactures a sing...
- BabyMoon Ltd. uses standard costing system in manufacturing one of its product 'Baby Cap'. The details are as follows: ...