Reference no: EM132573663
KPR manufactures makes and sells a single product. The standard cost card for the product, based on normal capacity of 45,000 units per month is as under:
Rupees
Material 60 kgs at Rs. 0.60 per kg 36.00
Labor ½ hour at Rs. 50.00 per hour 25.00
Variable factory overheads, 30% of direct labor cost 7.50
Fixed factory overheads 6.50
Total 75.00
Actual data for the month of August 20X9 is as under:
Work in process on December 1, 20X9(opening) Units 10,000
Started during the month Units 50,000
Transferred to finished goods Units 48,000
Work in process on December 31, 20X9 (closing) Units 10,000
Material purchased at Rs. 0.50 per kg Rs. 1,750,000
Material issued to production Kgs 3,100,000
Direct labor at Rs. 52 per hour Rs. 1,300,000
Factory overheads (including fixed costs of Rs. 290,000) Rs. 600,000
Required
Question a: Determine:
1. The material price variance
2. The material usage variance
3. The direct labor rate variance
4. The direct labor efficiency variance
5. The variable overhead expenditure variance
6. The fixed overhead expenditure variance
7. The fixed overhead volume variance