STANDARD COSTING

Miadad - Sports Company uses standard cost system. The cost data for various elements of cost for the manufacture of 100,000 cricket bats is as follows:

	STANDARDS	ACTUAL
Direct Material	50,000 units @ Rs. 170	50,800 units @ Rs. 160
Direct Labor	4,000 hours @ Rs. 100	4,300 hours @ Rs. 110
Factory Overhead	70% of Direct Labor	Rs. 290,000

All costs are charged to work in process at standard and separate variances accounts are established. There is no beginning or ending inventory of work in process

Required

1. Material Price Variance and Material Quantity Variance

2. Labor Rate Variance and Labor Time Variance

3. Overhead Variance

4. Entries in general journal to record the above information

5. Compare the actual cost of one cricket bat with its standard cost.