Assignment # MA

Following are the details of Exceed Battery Company for the period ended June 30, 2020.
Company established standard on its normal capacity of 120,000 units/ hours in a year:
Direct Material 600,000 kgs at Rs. 9 per kg
Direct Labor 4 hours per unit at Rs. 6 per hour
Factory overhead:
Fixed cost Rs. 240,000 per year or Rs. 20,000 per month.
Variable Cost Rs. 4.50 per hour.

During the one month of operation, company produced 11,000 units.

Direct material used: 60,500 kgs at Rs. 9.10 per kg
Direct labor used: 41,250 hours at Rs. 268,125
Actual Variable Factory overhead Rs. 55,000
Required:
Calculate the following variances:
a) Material quantity variance.
b) Material price variance.
c) Labor efficiency variance.
d) Labor rate variance.
e) Factory overhead controllable variance.
f) Factory overhead volume variance.
(10 marks)