Problem-12.14The following are actual cost and variances for direct materials and direct labour for the month of March 2002:ActualVariancesCostUnfavorableFavorableRs.Rs.Rs.Direct Material450,000Price variance35,000Quantity Variance25,000Direct Labour800,000Rate variance22.500Efficiency variance52,500Required:Standard cost of direct matenal and direct labourEntries in the general journal to record the above information and to close the variance accounts Problem-12.15The standard and actual cost data of RIZWAN LTD. are as follows::Standard70,000 units @ Rs. 2835,000 hrs @ Rs. 42Actual68,600units @ Rs. 24.5042,000 hrs @ Rs. 45.50Rs. 94,500Direct MaterialDirect LabourFactory Overhead50% of direct labourRequired:a) CalculateMaterial price variance and material quantity varianceLabour rate Variance and labour time varianceii)iii) Overhead varianceb) General journal entries to record the above information and to close the variance accounts.

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Description: Problem-12.14The following are actual cost and variances for direct materials and direct labour for the month of March 2002:ActualVariancesCostUnfavorableFavorableRs.Rs.Rs.Direct Material450,000Price variance35,000Quantity Variance25,000Direct Labou

The variances are calculated in order to compare the actual results with the standard results.…

Business

Accounting

The following are actual cost and variances for direct materials and direct labour for the month of March 2002: Actual Variances Cost Unfavorable Favorable Rs. Rs. Rs. Direct Material 450,000 Price variance 35,000 Quantity Variance 25,000 Direct Labour 800,000 Rate variance Efficiency variance 22.500 52,500

The following are actual cost and variances for direct materials and direct labour for the month of March 2002: Actual Variances Cost Unfavorable Favorable Rs. Rs. Rs. Direct Material 450,000 Price variance 35,000 Quantity Variance 25,000 Direct Labour 800,000 Rate variance Efficiency variance 22.500 52,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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