Question
Misc. Ltd. has set up the following standards for materials and direct labour for a standard batch of 10,000 units: Direct Materials: 10 kg. per
Misc. Ltd. has set up the following standards for materials and direct labour for a standard batch of 10,000 units:
Direct Materials: 10 kg. per unit @ Rs.30/kg.
Direct labour: 1 hr. per unit @ Rs. 20/hr.
The number of actual units produced was 9,810. During the month, material purchases amounted to 1,00,000 kg. at a total cost of Rs.31,00,000. The actual rate paid for labour was Rs.21 per hour. Actual inputs used were: 98,073 kgs. of material and 9,800 hours of labour.
Find out the total direct material and labour cost variances with their rate and efficiency subvariances.
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