1. (A) What do you understand by Standard Cost and Standard Costing? Explain the different types of Standards

(B) Material Variance:

The Standard material cost of produce One unit of Al Safi Danone co. is:

1200 kg Material A @ SR 5000 per kg

800 Kg Material B @ SR 4000 per kg

During a period, 50 units of mixture X was produced from the usages of:

50 tons of Material A @ SR 4 per ton

30 tons of Material B @ SR 3 per ton

Calculate following variances:

• Material Cost Variance (MCV)
• Material Price Variance (MPV)
• Material Usage Variance (MUV)
• Material Mix Variance (MMV)