The budgeted production of a company is 20,000 Units per month. The Standard Cost Sheet is as under:

Direct Materials 1.5 kg @ Rs.6 per kg

Direct Labour 6 hours @ Rs.5 per hour

Variable Overheads 6 hours @ Rs.4 per hour

Fixed Overheads Rs. 3 per unit

Selling Price Rs. 72 per unit

The following are the actual details for the month:

1.Actual production and sales 18,750 units

2.Direct materials consumed 29,860 kg. at Rs. 5.25 per kg.

3.Direct labour hours worked 118125 hours at Rs. 6 per hour

4.Actual overheads were Rs. 525,000 out of which a sum of Rs. 40,000 was fixed

5.There is no change in the selling price.

Calculate:

a.Direct Materials Usage and Price Variances

b.Direct Labour Efficiency and Rate Variances

c.Variance Overheads Efficiency and Expense Variances

d.Fixed Overhead Volume and Expense Variances

Answer rating: 100% (QA)

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