Given the following information: Budget Actual Units produced 20,000 22,000 Materials (kg) 80,000 96,000 Direct Labour (Hours) 290,000 343,000 Material Costs $800,000 ? Direct Labour Costs $3,850,000 $4,557,800 Variable Overhead Costs $3,500,000 $4,400,000 Fixed Overhead Costs $1,600,000 $1,610,000 Other Information Overhead is Allocated on Direct Labour Hours During the...

4.0 Ratings (682 Votes)


	Budget	Per Unit	Standered	Per Unit	Actual	Per Unit
Units Produced	20000		22000		22000
Material (kg)	80000		88000		96000
Direct Labour (Hours)	290000		319000		343000
Material Cost	8,00,000	10	8,80,000	10.00	8,00,000	8.33
Direct Kabour Cost	38,50,000	13	42,35,000	13.28	45,57,800	13.29
Variable Overhead Costs	35,00,000	12	38,50,000	12.07	44,00,000	12.83
Fixed Overhead Costs	16,00,000	6	17,60,000	5.52	16,10,000	4.69


Answer
A. Material Rate	=(Standered rate- actual rate)* Actual Qty
=	(10-8.33)*96000	1,60,320


B. Material Efficiency
Material Effeciency Varaiance =	(Standered Qty- Actual Qty ) *Standered Rate
=	(88000-96000)*10	-80,000	(U)


C. Labour Price	=(Standered rate- actual rate)* Actual Hours
=	(13.28-13.29)*343000	-3430	(U)


D. Labour Efficiency
Labour Efficiency =	(Standered Hours- Actual Hours ) *Standered Rate
=	(319000-343000)*13.28	-3,18,720	(U)

E. Variable Overhead Rate	=(Standered rate- actual rate)* Actual Hours
	(12.07-12.83)*343000	-260680	(U)

F. Variable Overhead Efficiency	(Standered Hours- Actual Hours ) *Standered Rate
	(319000-343000)*12.83	-3,07,920	(U)

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