Material cost Variance= (StandardQuantity×StandardPrice)−(ActualQuantity×ActualPrice)
= (StandardQuantity×StandardPrice)−(ActualQuantity×ActualPrice)
Standard quantity=70(2100000×100)=3,000,000
Actual price= 280000252000=0.9
MCV=(3000000×1)−(280000×0.9)
(3000000)−(252000)=2,748,000(F)
Material Price Variance=(BudgetedPrice−ActualPrice)×QuantityofmaterialUsed
= (1−0.9)×280,0000
= 28,000 (F)
Material Usage Variance
MUV=(StandardQuantityallowed−Actualquantityused)×standardpriceperunitofmaterial
=(3000000−280,000)×1
=2,720,000
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