Determine and calculate the two variances for material

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Following are the details of Abbass Industries for the period ended June 30, 2020. Company establish 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:

Problem 1: Calculate the two variances for material, two variances for labor, and two variances for factory overhead.

Reference no: EM132639800

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