" The budgeted production and sales of a product were 20,000 units for December 2020. Actual production and sales were 19,250 units for the month. For the budgeted production, the company estimated that 40,000 feet of material would be required at an average rate of Rs. 125 per foot. It also estimated the labour hours required to be 10,000 hours at an average rate of Rs. 80 per hour. The actual costs incurred were Rs. 50,80,000 for 40,000 feet of material used and Rs. 7,41,000 for 9500 hours of labour employed. Find out the Direct Material and Direct Labour cost variances and sub-variances."

Answer rating: 100% (QA)

To find the Direct Material and Direct Labour cost variances and subvariances we need to use the following formulas 1 Direct Material Cost Variance Di... View the full answer