The Following information has been used by YK & Co. in preparing its budget for January and February 2009,

January 2009 February 2009

Units to be sold 90,000 110,000

Units to be produced 120,000 100,000

Direct labour hours 240,000 200,000

Insurance of factory Rs. 200,000 Rs. 200,000

Salaries: selling Rs. 130,000 Rs. 130,000

Depreciation (factory building and machinery) Rs. 100,000 Rs. 100,000

Light and heat (factory) Rs. 340,000 Rs. 300,000

Advertising Rs. 150,000 Rs. 150,000

Indirect Factory Labour Rs. 380,000 Rs. 330,000

Factory Supplies Rs. 300,000 Rs. 250,000

Direct material consumption Rs. 600,000 Rs. 500,000

Lubricants for factory machine Rs. 180,000 Rs. 150,000

(a) Variable cost per hour for Light & heat (b) Variable cost per hour for Indirect Factory Labor (c) Variable cost per hour for Factory Supplies (d) Variable cost per hour for Lubricants for factory machine (e) Total Variable cost per hour (f) Fixed FOH for Light & heat (g) Fixed FOH for Indirect Factory Labor (h) Fixed FOH for Factory Supplies (i) Fixed FOH for Lubricants for factory machine (j) Total Fixed FOH [11:58 am, 08/09/2021] Shoaib: The accountant of Syn Inc have deployed the following information regarding the standard cost actual costs of a product manufactured in June 1996

Material:

Standard 80,000 ounces at Rs. 0.30 per ounce

Actual 88,000 ounces at Rs. 0.29 per ounce

Labor:

Standard 4.000 ounces at Rs. 10.00 per ounce

Actual 3.600 ounces at Rs.10.40 per ounce

Factory Overhead

Standard Rs. 9,000 fixed cost and Rs. 5,000 variable cost for 10.000 units normal monthly

Actual Rs. 9,000 fixed cost and Rs. 4,600 variable cost for 8,000 units actually produced in June.

The normal volume is 10.000 units per month, but only 8,000 units were manufactured in June. Calculate

i) Material price variance ii) Material usage/quantity variance iii) Labour rate Variance iv) Labour time variance v) Overhead variance