Pervaiz Products Company uses a standard Cost System. For the year ended March 31 the company...

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Pervaiz Products Company uses a standard Cost System. For the year ended March 31 the company results may be summarized as under: Particulars Production (in units) Material price per pound Material quantity Direct Labour hours Standard 140,000 Actual 143,000 ng Rs.60.00 Rs.62.50 280,000 lbs. | 290,000 lbs 7,000 6,900 Direct Labour Cost per hour Rs.22.50 Rs.22.00 Factory overhead: (Variable expenses) 490,000 (Fixed expenses) 700,000 210,000 700,000 Rs.716,500 cour, Actual overhead There is no inventory of work-in-process at the beginning or at the end of the above fiscal year. Required: (1) Prepare a statement showing analysis of variances. am (2) Compute actual and standard cost per unit of product. Pervaiz Products Company uses a standard Cost System. For the year ended March 31 the company results may be summarized as under: Particulars Production (in units) Material price per pound Material quantity Direct Labour hours Standard 140,000 Actual 143,000 ng Rs.60.00 Rs.62.50 280,000 lbs. | 290,000 lbs 7,000 6,900 Direct Labour Cost per hour Rs.22.50 Rs.22.00 Factory overhead: (Variable expenses) 490,000 (Fixed expenses) 700,000 210,000 700,000 Rs.716,500 cour, Actual overhead There is no inventory of work-in-process at the beginning or at the end of the above fiscal year. Required: (1) Prepare a statement showing analysis of variances. am (2) Compute actual and standard cost per unit of product.

Answer rating: 100% (QA)

1 Statement of analysis of Variance Particulars Standard Actual Variance Production in units 140000 ... View the full answer