The standard and actual cost data of M/s. ABC Company is as follows: Standard Raw Material (DM)
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Question:
The standard and actual cost data of M/s. ABC Company is as follows:
Standard Raw Material (DM) is 5000 units @ Rs. 10 while the Actual 4900 units @ Rs. 8
Standard Direct Labor (DL) is 10000 hours @ Rs. 4 while the Actual 12000 Hours @ Rs. 5
Standard Factory Overhead (FOH) is 50% of Direct Labor while Actual FOH is Rs. 15000
Required:
A) Calculate;
- Material Price Variance and Material Quantity Variance
- Labor rate variance and Labor time variance
- Overhead Variance
B) Give journal entries to record the above information and close the variance accounts.
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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