Reference no: EM132515532

Ding-Dong toys manufacturing company has prepared the following cost sheet based on 8,000 units of output per month.

                                                                            Rs.

Direct Material per unit required 1.5 kg @ Rs. 24 per kg. 36.00

Direct Labour per unit required 3 hours @ Rs. 4 per hour 12.00

Variable overheads per unit (based on 3 direct labour hour) 7.20

Fixed overhead per unit                                                4.80

Total cost per unit                                                          60.00

The actual results for the month of October 2018 are given below-

• Direct Material Purchased and consumed were 11224 kg. for Rs. 2,66,570
• Direct labour hours worked were 22,400 and direct wages paid amounted to Rs. 96,320
• Factory overheads incurred amounted to Rs. 96,440 out of which the variable overhead is Rs. 2.60 per direct labour hours worked.
•  Actual Output is 7,620 units

Question 1: Calculate-

i. Material Cost Variance

ii. Material Price Variance

iii. Material Usage Variance

iv. Labour Rate Variance

v. Labour Efficiency Variance

vi. Variable overhead Expenditure Variance

vii. Variable overhead Efficiency Variance

viii. Fixed overhead Expenditure Variance

ix. Fixed overhead Volume Variance

x. Fixed overhead Efficiency Variance