Q.No.2     The standard and actual cost data of M/s. ABC Company are as follows:              Standard Raw Material (DM) is 5000 units @ Rs. 10 while Actual 4900 units @ Rs. 8 Standard Direct Labor (DL) is 10000 hours @ Rs. 4 while Actual 12000 Hours @ Rs. 5 Standard Factory Overhead (FOH) is 50% of Direct Labor while Actual FOH Rs. 15000 Required:                                A) Calculate; Material Price Variance and Material Quantity Variance Labor rate variance and Labor time variance Overhead Variance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Q.No.2

 

 

The standard and actual cost data of M/s. ABC Company are as follows:             

Standard Raw Material (DM) is 5000 units @ Rs. 10 while Actual 4900 units @ Rs. 8

Standard Direct Labor (DL) is 10000 hours @ Rs. 4 while Actual 12000 Hours @ Rs. 5

Standard Factory Overhead (FOH) is 50% of Direct Labor while Actual FOH Rs. 15000

Required:                               

  1. A) Calculate;
  2. Material Price Variance and Material Quantity Variance
  3. Labor rate variance and Labor time variance
  • Overhead Variance
  1. B) Give journal entries to record the above information and close the variance accounts.
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