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The following information concerns the Dormnat Company which manafactures one product

The following information concerns the Dormnat Company, which manafactures one product and uses a standard cost system.

Standardcost per unit:

Material:3liters @ Rs2                                                                                                   Rs 6
 
Directlabor:2hrs @ Rs8                                                                                                 16
 
Variable factory overhead: 2hrs @ Rs3                                                                  6
 
Fixed factory overhead: 2hrs @ Rs2                                                                        4
 
                                                                                                                                                       = Rs 32
Other data:
 
Actual production: 11,000 units
 
Material purchased: 50,000 liters @ Rs 1.9; purchases arerecorded at standard cost
 
Dirct labor (23,000 hours): Rs 1,93,200
 
Factory overhead: Rs 1,03,000
 
Normal capacity:10,000 units or 20,000 direct labourhours
 
Material used: 35,000 liters
 
You are required to calculate two variances each for material,labor

Apr 17 2018 View more View Less

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