The XYZ Company uses Standard costing system. Following data are taken from its cost record. STANDARD ACTUAL Direct Material Rate per unit Rs. 10 Rate per unit Rs. 12 Total Cost Rs. 80,000 Quantity 8,600 units Direct Labour Wages per hour Rs. 40 Wages per hour Rs. 30 Total labour

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The XYZ Company uses Standard costing system. Following data are taken from its cost record.
STANDARD ACTUAL
Direct Material Rate per unit Rs. 10 Rate per unit Rs. 12
Total Cost Rs. 80,000 Quantity 8,600 units
Direct Labour Wages per hour Rs. 40 Wages per hour Rs. 30
Total labour hours 600 Total labour cost Rs. 16,500
Factory Overhead 90% of Direct labour Rs. 20,000
Required:
1] Compute the Following. a) Material Price Variance
b) Material Quantity Variance c) Labour Rate Variance
d) Labour efficiency variance e) Overhead Variance 

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