A = 400/700 x 750 = 428.67 units B = 200/700 x 750 = 214.29 units C = 100/700 x 750 = 107.14 units 1 SQSP = Standard Cost of Standard Material = 25,500 2 RSQSP= Revised Standard Cost of Material = 27,325 3. 4. a AQSP= Standard Cost of Actual Material = 27,150 AQAP= Actual Cost of Material = 726,250 Material yield Variance (1-2) = 1.825 (A) b. Material Mix Variance (2-3) = 175 (F) C. Material usage Variance (1-3) = 1,650 (A) d. Material Price Variance (3-4)= 900 (F) e. Material Cost Variance (1-4) = 750 (A) p 43 Calculation of Labour Variances: (1) SRSHR) Men Women Men Women (2) SRRSHR) 2x 107.14 1.50 x 214.28 214.28 321.42 536 (3) SRAH ) 2 x 120 1.50 x 240 240 360 600 200 300 500 RSH for Men = 100/700 x 750 = 107.14 units. Women = 200/700 x 750 = 214.28 units. 1. SRSH = Standard Cost of Standard Labour = 500 2. SRRSH = Revised Standard Cost of Labour = 536 3 SRAH = Standard Cost of Actual Labour = 3600 4. ARAH = Actual Cost of Labour = 684 a. Labour yield Variance (1-2) = 36 (A) b. Labour Mix Variance (2-3) = 64 (A) Labour efficiency Variance (1-3) = 100 (A) d. Labour Rate Variance (3-4) = 84 (A) Labour Cost Variance (1-4)= 184 (A) c. e Illustration 10 Budgeted hours for month of March, 2012 Standard rate of article produced per hour Budgeted fixed overheads Actual production March, 2012 Actual hours for production Actual fixed overheads Calculate overhead cost, budgeted variances. 180 Hrs. 50 Units 2,700 9,200 Units 175 Hrs. 2.800