Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Trishul Industries is engaged in the manufacture of product 'Trishank. The prime cost details for which are as under: Cost per completed piece (Rs.)

Trishul Industries is engaged in the manufacture of product 'Trishank". The prime cost details for which are as under: Cost per completed piece (Rs.) Component of Cost Details. Direct Materials Direct Labour 5 kgs @ Rs. 4.20/kg 3 hours @ Rs. 3/hr As per the production schedule, 5000 units were to be produced in December 2021. However, 5, 120 units were actually manufactured. Direct Materials were purchased to the tune of 30000 kgs and were billed at Rs. 1,35,000. The production records for the month of December 2021 were extracted and they showed the following results: Component of Cost Details Direct Materials Requisitioned and used - 25700 kgs Direct Labour 21.00 9.00 Worked and paid for - 15,150 hrs @ Rs. 48,480/- a) Calculate material cost variance, material usage variance and material price variance. (12 marks) b) Calculate labour cost variance, labour efficiency variance and labour rate variance (12 marks)

Step by Step Solution

3.56 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost management a strategic approach

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

5th edition

73526940, 978-0073526942

More Books

Students also viewed these Accounting questions

Question

Give codons for the following amino acids: (a) Th (b) Asp (c) Thr

Answered: 1 week ago

Question

What are the three types of inventory in a manufacturing firm?

Answered: 1 week ago