Tham khảo tài liệu 'pearson education of management accounting_16', kinh doanh - tiếp thị, quản trị kinh doanh phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 504 APPENDIX D SOLUTIONS TO SELECTED EXERCISES Varne Chemprocessors a The standard usage rate of UK194 per litre of Varnelyne is 200 5 000 . The standard price is 392 200 per litre of UK194. Materials usage variance UK194 is 637 500 X - 28 100 X 5 096 A Materials price variance is 28 100 X - 51 704 3 372 F b The net variance on UK194 was from the calculations in a 1 724 A that is 5 096 - 3 372 . This seems to have led directly to savings elsewhere of 4 900 giving a net cost saving of over 3 000 for the month. Unfortunately things may not be quite as simple as the numbers suggest. The nonstandard mix to make the Varnelyne might lead to a substandard product which could have very wide-ranging ramifications in terms of potential loss of market goodwill. There is also the possibility that the material for which the UK194 was used as a substitute was already held in inventories. If this were the case is there any danger that this material may deteriorate and ultimately prove to be unusable Other possible adverse outcomes of the non-standard mix could also arise. The question is raised by the analysis in part a and by the production manager s comment of why the cost standard for UK194 had not been revised to take account of the lower price prevailing in the market. c The variances period by period and cumulatively for each of the two materials are given as follows UK500 UK800 Period Period Cumulative Period Cumulative 1 301 F 301 F 298 F 298 F 2 251 a 50 F 203 F 501 F 3 102 F 152 F 52 a 449 F 4 202 A 50 A 98 A 351 F 5 153 F 103 F 150 A 201 F 6 103 a zero 201 A zero Without knowing the scale of these variances relative to the actual costs involved it is not possible to be too dogmatic about how to interpret the above information. UK500 appears to show a fairly random set of data with the period variances fluctuating from positive to negative and giving a net variance of zero. This is what would be expected from a situation that is basically .
