The following standards have been set to manufacture a product: Direct material 2 units of A@*4...

 

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The following standards have been set to manufacture a product: Direct material 2 units of A@*4 per unit 3 units of B @ 3 per unit 15 units of C @ Re. 1 per unit Direct labour 3 hrs. @ 8 per hour Total standard prime cost ₹ 8.00 9.00 15.00 32.00 24.00 56.00 The company manufactured and sold 6,000 units of the product during the year. Direct material costs were as follows: 12,500 units of A at 4.40 per unit 18,000 units of B at * 2.80 per unit 88,500 units of C at 1.20 per unit The company worked 17,500 direct labour hours during the year. For 2,500 of these hours the company paid at 12 per hour while for the remaining the wages were paid at standard rate. Calculate materials price variances and usage variances and labour rate and efficiency variances. The following standards have been set to manufacture a product: Direct material 2 units of A@*4 per unit 3 units of B @ 3 per unit 15 units of C @ Re. 1 per unit Direct labour 3 hrs. @ 8 per hour Total standard prime cost ₹ 8.00 9.00 15.00 32.00 24.00 56.00 The company manufactured and sold 6,000 units of the product during the year. Direct material costs were as follows: 12,500 units of A at 4.40 per unit 18,000 units of B at * 2.80 per unit 88,500 units of C at 1.20 per unit The company worked 17,500 direct labour hours during the year. For 2,500 of these hours the company paid at 12 per hour while for the remaining the wages were paid at standard rate. Calculate materials price variances and usage variances and labour rate and efficiency variances.

Answer rating: 100% (QA)

Material A Price variance Standard price actual price x actual quantity 4 440 x 12500 040 x 12500 Rs... View the full answer