The standard and actual cost data of RIZWAN LTD. are as follows:StandardActual68,600units @ Rs. 24.5042,000 hrs @ Rs. 45.50Direct Material70,000 units @ Rs. 2835,000 hrs @ Rs. 42Direct LabourFactory Overhead50% of direct labourRs. 94,500Required:a) Calculatei)Material price variance and material quantity varianceii) Labour rate Variance and labour time varianceiii) Overhead varianceb) General journal entries to record the above information and to close the variance accounts. The following are actual cost and variances for direct materials and cirect 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 materal and direct labourEntries in the general joumal to record the above information and to close the variance accOunts

Name: The standard and actual cost data of RIZWAN LTD. are as follows:Stand
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Description: The standard and actual cost data of RIZWAN LTD. are as follows:StandardActual68,600units @ Rs. 24.5042,000 hrs @ Rs. 45.50Direct Material70,000 units @ Rs. 2835,000 hrs @ Rs. 42Direct LabourFactory Overhead50% of direct labourRs. 94,500Required:a)

Variance Analysis is the method of controlling the cost in order to make appropriate decision by…

Business

Accounting

The standard and actual cost data of RIZWAN LTD. are as follows: Standard Actual 68,600units @ Rs. 24.50 42,000 hrs @ Rs. 45.50 Direct Material 70,000 units @ Rs. 28 Direct Labour 35,000 hrs @ Rs. 42 50% of direct labour Factory Overhead Rs. 94,500 Required: a) Calculate i) Material price variance and material quantity variance ii) Labour rate Variance and labour time variance iii) Overhead variance b) General journal entries to record the above information and to close the variance accounts.

The standard and actual cost data of RIZWAN LTD. are as follows: Standard Actual 68,600units @ Rs. 24.50 42,000 hrs @ Rs. 45.50 Direct Material 70,000 units @ Rs. 28 Direct Labour 35,000 hrs @ Rs. 42 50% of direct labour Factory Overhead Rs. 94,500 Required: a) Calculate i) Material price variance and material quantity variance ii) Labour rate Variance and labour time variance iii) Overhead variance b) General journal entries to record the above information and to close the variance accounts.

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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