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The following details were extracted from the standard cost card of a component: Raw Materials 2.82 Kgs @ Rs.4.80 Kg. Direct Labour Type I 6.5 hrs @ Rs.3.75 Type II 3.85 hrs @Rs. 4.25 During a period original results were as follows: Production 1,100 components. Direct Material Purchase and usage 3,200 Kgs at a cost of Rs.15,100 Wages Paid Type I (7,120 hrs ) Rs.27,056 Type II (4,235) Rs. 18,210
Requirement: You are needed to calculate what variances have arisen.
Please kindly post some problems along with solutions so it is easy to understand..I am quite satisfied by the per-forma you have mentioned.. THANK YOU.
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price variance-15100-153620=260 (fav)usage variance-15360-14890=470 (adverse)total material variance=210 (adv)
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