Solution-Calculate the material quantity variance

Calculate the material quantity variance

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Reference no: EM132938635

Question - Following are the details of Exceed Battery Company for the period ended June 30, 2020.

Company established standard on its normal capacity of 120,000 units/ hours in a year:

Direct Material 600,000 kgs at Rs. 9 per kg

Direct Labor 4 hours per unit at Rs. 6 per hour

Factory overhead:

Fixed cost Rs. 240,000 per year or Rs. 20,000 per month.

Variable Cost Rs. 4.50 per hour.

During the one month of operation, company produced 11,000 units.

Direct material used: 60,500 kgs at Rs. 9.10 per kg

Direct labor used: 41,250 hours at Rs. 268,125

Actual Variable Factory overhead Rs. 55,000

Required -

a) Calculate the Material quantity variance.

b) Calculate the Material price variance.

c) Calculate the Labor efficiency variance.

d) Calculate the Labor rate variance.

e) Calculate the Factory overhead controllable variance.

f) Calculate the Factory overhead volume variance.

Reference no: EM132938635

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Calculate the material quantity variance

Reference no: EM132938635

Reference no: EM132938635

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