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SP Limited produces a single product and standard costing system is followed in the organization. The standard cost card of the product shows the following
SP Limited produces a single product and standard costing system is followed in the organization. The standard cost card of the product shows the following cost per unit: Rs. 215 Particulars Direct materials (10 kg! @ Rs. 4 per kg) Direct labour (8 hours @ Rs. 8 per hour) Variable Overhead (8 hours @ Rs. 3 per hour Fixed Overhead (18 hours @ Rs.3 per hour) 24 24 Budgeted and actual data for the third quarter of a year was as follows: Actual Particulars Budgeted Production and Sale 2,000 units Direct Materials 20.000 Kg. @ Rs.4 per Kg 1.800 units 20,500 Kg.to Rs.4.50 per 14.800 hours @Rs.9 per hour Rs: 88,800 Rs. 42,800 Direct Labour 16,000 hours @Rs.8 per hour Variable Overheads Fixed overheads Rs. 96,000 RS. 48,000 You are required to calculate: (1) Material Price Variance (1) Material Usage Variance (iii) Labour Rate Variance (iv) Labour Efficiency Variance (0) Variable Overhead Cost Variance (vi) Fixed Overhead Cost Variance dal
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