Q.No.2     The standard and actual cost data of M/s. ABC Company are as follows:              Standard Raw Material (DM) is 5000 units @ Rs. 10 while Actual 4900 units @ Rs. 8 Standard Direct Labor (DL) is 10000 hours @ Rs. 4 while Actual 12000 Hours @ Rs. 5 Standard Factory Overhead (FOH) is 50% of Direct Labor while Actual FOH Rs. 15000 Required:                                A) Calculate; Material Price Variance and Material Quantity Variance Labor rate variance and Labor time variance Overhead Variance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Q.No.2

 

 

The standard and actual cost data of M/s. ABC Company are as follows:             

Standard Raw Material (DM) is 5000 units @ Rs. 10 while Actual 4900 units @ Rs. 8

Standard Direct Labor (DL) is 10000 hours @ Rs. 4 while Actual 12000 Hours @ Rs. 5

Standard Factory Overhead (FOH) is 50% of Direct Labor while Actual FOH Rs. 15000

Required:                               

  1. A) Calculate;
  2. Material Price Variance and Material Quantity Variance
  3. Labor rate variance and Labor time variance
  • Overhead Variance
  1. B) Give journal entries to record the above information and close the variance accounts.
Q.No.2
The standard and actual cost data of M/s. ABC Company are as follows:
Standard Raw Material (DM) is 5000 units @ Rs. 10 while Actual 4900 units @ Rs. 8
Standard Direct Labor (DL) is 10000 hours @ Rs. 4 while Actual 12000 Hours @ Rs. 5
Standard Factory Overhead (FOH) is 50% of Direct Labor while Actual FOH Rs. 15000
Required:
A) Calculate;
i. Material Price Variance and Material Quantity Variance
ii. Labor rate variance and Labor time variance
111.
Overhead Variance
B) Give journal entries to record the above information and close the variance accounts.
Transcribed Image Text:Q.No.2 The standard and actual cost data of M/s. ABC Company are as follows: Standard Raw Material (DM) is 5000 units @ Rs. 10 while Actual 4900 units @ Rs. 8 Standard Direct Labor (DL) is 10000 hours @ Rs. 4 while Actual 12000 Hours @ Rs. 5 Standard Factory Overhead (FOH) is 50% of Direct Labor while Actual FOH Rs. 15000 Required: A) Calculate; i. Material Price Variance and Material Quantity Variance ii. Labor rate variance and Labor time variance 111. Overhead Variance B) Give journal entries to record the above information and close the variance accounts.
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