Question ABC Company has a budgeted normal capacity of 10,000 labor hours, with a standard production of 8,000 units at that capacity. Standard Cost are as follows; Material 2 KG at Rs. 50/- Labor Rs. 9 per hour Factory Overhead Fixed 5,000 Variable Rs. 1.5 per labor hour. During May actual factory overhead was 17,550 and 9,000 labor hours at cost Rs. 76,500. During the month 7000 units were produced using 14,400 kg of material costing Rs. 0.51 per kg. Required Calculate the following variance; 1. Material Variance 2. Labor Variance