Q1 Standard Costing

Alpha Co. uses standard cost system. Following are taken from its cost accounting records.

Details	Standard Cost	Actual Cost
Raw Materials	Rate per unit Rs. 10 Total Units Rs. 10,000	Rate per unit Rs. 12 Total Cost Rs. 96,000
Direct Labor	Wage per hour Rs. 15 Total Labor cost Rs. 150,000	Wage per hour Rs. 17 Total hours Rs. 11,000
Factory Overhead	90 % of Direct labor cost	Total cost Rs. 160,300

Required: a) Calculate:

1. Material Price Variance ii) Material Quantity Variance

iii) Labour Rate Variance iv) Labor Efficiency Variance

v) FOH Variance

b) Record necessary entries in General Journal.