N.B: Answer is given below. Question is: * What sort of variance (e.g., Direct materials/Labor/Manufacturing Overhead) you may observe? Please explain shortly

Direct material variance: Standard price- 120/kg Standard quantity- 87.4 kg Actual price- 111.15/kg Actual quantity- 92.5 kg

MPV= AQ (AP-SP) = 92.5 (111.15-120) = -818.62 = 818.62 F

MQV= SP (AQ-SQ) = 120 (92.5-87.4) = 612 U

Total variance = 206.62 F

Direct labor variance: Standard rate= 15tk/per hour Standard hour= 99 hour Actual rate= 25tk/hour Actual hour = 600 hour

LRV= AH (AR-SR) = 600 (25-15) = 6000 U

LEV = SR (AH-SH) = 15 (600-99) = 7515 U

Total variance = 13515 U

Variable Manufacturing Overhead Variance: Standard rate= 6tk/per hour Standard hour= 99 hour Actual rate= 12.33tk/hour Actual hour = 600 hour

V.MRV= AH (AR-SR) = 600 (12.33-6) = 3798 U

V.MEV = SR (AH-SH) = 6 (600-99) = 3006 U

Total variance = 6804 U