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Calculate and briefly comment on variances material purchase

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Reference no: EM132552550

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A standard quantity of 2kg of material X at a standard price of R4 per kg is allowed for the production of one unit of product Messi. The cost figures for the first quarter of 2020 showed that 4 400 kg of material X was purchased at R4.10 per kg.

2000 units of product Messi were produced using 4 200 kg of material X.

Required:

Question 1: In respect of material, calculate and briefly comment on the following variances:

  1. Material Purchase price variance. 
  2. Material Issue price variance. 
  3. Material Quantity variance. 
  4. Total material variance for the 4 200 kg of material issued.

Reference no: EM132552550

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