Costing.pdf - Solutions of Standard Costing Ans.2 Working Notes(1 For actual(standard output of 85 kgs Std Input is 100 kgs 100kgs For actual output of

Costing.pdf - Solutions of Standard Costing Ans.2 Working...

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Unformatted text preview: Solutions of Standard Costing Ans.2 Working Notes (1) For actual (standard) output of 85 kgs. Std. Input is 100 kgs. 100kgs For actual output of 1,700 kgs. the Std. input = 1700kgs =2,000 kgs. 85kgs (2) 2,000 kgs of standard input for an actual output of 1,700 kgs. Contains the Materials A and B in the proportion of (40:60) i.e., 800 kgs. of A and 1,200 kgs. of Material B. (3) Actual Material consumption for 1,700 kgs. of actual output Particulars (Kgs.) Materials A B Stock on 1-9-2004 Add: Purchase during Sept. 2004 35 800 835 5 830 Less: Stock on 30-09-2004 Material consumed during Sept.2004 40 1,200 1,240 50 1,190 (4) Calculation actual purchase price per kg. of material A = Rs.3400 Rs.4.25 800kgs B = Rs.3000 Statement shoeing Standard and Actual Cost of Actual output Material Standard Quantity Rate Amount Kg. Rs. Rs. A 800 4 3,200 B 1,200 3 Rs.2.50 1200kgs 3,600 40 2,000 300 1,700 6,800 Calculation of Material Variances (a) Material price variance Actual quantity (Std. price – Actual Price) A = [35 (4 – 4)] + [ 795 ( 4 – 4.25)] B = [40 ( 3 – 3)] +[1,150 ( 3 – 2.50 )] =Rs.198.75 =Rs. 575 (b) Material Usage variance Std. rate (Std. quantity – Actual Quantity) A = 4 (800 – 830) B = 3 (1,200 – 1,190) =Rs.120 =Rs. 30 (c) Material Yield Variance Std. rate of output (Actual yield – Std. Yield) =[Rs.6,800 x ( 1,700 kg. – 1,717 kg.)] 1,700 * Std. Yield = Actual std Output Std. Input Amount Rs. 140.00 3,378.75 4.25 3.00 1190 1150 Loss Output Actual Rate Rs. 4.00 Quantity Kg. 35 830 795 120.00 2,875.00 2.50 2,020 320 1,700 6,513.75 (A) (F) =Rs.376.25 (F) (A) (F) =Rs.90 (A) =Rs.68 (A) Actual input = (d) Material Mix Variance Actual Quantity ( Std. cost of Std. mix per kg. – Std. cost of actual mix per kg. ) 85kgs 100kgs 2020kgs 1717kgs = 2020 kgs Rs. 6800 Rs. 6890* =Rs.22(A) 2000 kgs 2020 kgs *[(830 kgs. x Rs.4)] + [(1,190 kgs x Rs.3 )] =Rs.6,890 (e) Total Materials Cost Variance Std. Cost – Actual Cost =Rs.6,800 – Rs.6,513.75 =Rs.286.25 (F) Summary of Material variance Price variance Usage variance 1. Yield variance 2. Mix variance Total Material cost variance (Rs.) 376.25 (F) 68 (A) 22 (A) 90 (A) 286.25 (A) Ans. 3: Working Note: Standard cost Component A B Actual cost Revised std.quantity Qty. Rate Amount Qty. Rate Amount Oty. Kg. Rs. Rs. Kg. Rs. Rs. Kg. 48 10 480 72 (B.F.) 12 864 54 112 30 224 108 8 864 126 704 180 1728 180 5,360 — Total Input 160 (-) Loss 16(10%) 36 Total output 144 144 Solution (i) Mix variance = Std. price (Revised Std. quantity – Actual quantity) A: 10 × (54-72) = 180 (A) B: 2 × (126-108) = 36 (F) 144 (A) (ii) Yield variance = Std. price of yield (Actual yield – Std. yield for actual mix) = Rs. 880 180 × (144 –180×90%) = Rs. 88 (A) (iii) Price variance =Actual qty. (Std. price – Actual price.) A: 72 × (10-12) = 144 (A) B: 108 × (2-8) = 648 (A) 792 (A) (iv) Total usage variance = Std. price (Std. qty. – Actual qty.) A: 10 × (48-72) = 240 (A) B: 2 × (112-108) = 8 (F) 232 (A) Ans. 4: Take the good output of 182 kgs. The standard quantity of material required for 182 kg. of output is 182 100 202.22 90 Statement showing the standard and actual costs and standard cost of actual mix Standard cost Component Actual cost Qty. Rate Kg. Rs. Rs. 80.89 60 4,853.40 B (60% of 202.22 kg.) 121.33 30 3,639.90 110 Total Input 202.22 8,493.30 200 (-) Loss 20.22 18 Total output 182.00 182 A (40% of Amount Revised std.quantity Qty. Rate Amount Oty. Kg. Rs. Rs. Kg. 90 18 1,620 80 34 3,740 120 5,360 200 5,360 — 202.22 kg.) Standard yield in actual input is 90 % of 200 kg. i.e. 180 kg. Variances : (i) Price variance =Actual qty. (Std. price – Actual price.) A: 90 × (60-18) = 3780 (F) B: 110 × (30-34) = 440 (A) 3340 (F) (ii) Total usage variance = Std. price (Std. qty. – Actual qty.) A: 60 × (80.89-90) = 546.60 (A) B: 30 × (121.33-110) = 339.90 (A) 206.70 (A) (iii) Mix variance = Std. price (Revised Std. quantity – Actual quantity) A: 60 × (80-90) = 600 (A) B: 30 × (120-110) = 300 (F) 300 (A) (iv) Yield variance = Std. price of yield (Actual yield – Std. yield for actual mix) = Rs. (v) Total variance 8493.30 182 × (182 – 182 202.22 200 ) = Rs. 93.30 (F) = Std. cost – Actual cost = Rs. 8,493.30 – Rs. 5,360 = Rs. 3133.30 (F) Note : (iii) and (iv) above are subparts of total usage variance Proof : Price variance + Mix variance + Yield variance = Total variance Rs. 3340 (F) + Rs.300 (A) + Rs. 93.30 (F) = Rs. 3133.30 (F) Ans. 5: Working Notes : (i) Since the actual output is 1,000 units, the standard quantity of materials required for the actual output is 1,000 units × 4 kgs. = 4,000 kgs. (ii) Statement showing computation of standard cost, standard cost of actual quantity and actual cost. Material Std. cost per Kg. Actual cost per Kg. Std. qty in Kgs. Actual qty in Kgs. Std. cost (Std. qty × Std. price) Rs. Std. cost of actual qty. (Actual qty. × Std. price) Rs. Actual cost (Actual qty. × Actual price) Rs. f = a×d g = b×d Rs. Rs. a b c d e = a×c A 1.25 1.30 1,200 1,180 1,500 1,475 1,534 B C 1.50 3.50 1.80 3.40 1,600 800 1,580 830 2,400 2,800 2,370 2,905 2,844 2,822 D 3.00 3.00 400 440 1,200 1,320 1,320 4,000 4,030 7,900 8,070 8,520 (iii) Standard cost per unit of the standard mix Rs. 7,900 4,000 Kgs. = Rs.1.975 = (iv) Standard cost per unit of the actual mix = Rs.8070 Rs.2.002 4030kgs Variances: (i) Price variance = Actual qty. (Std. price – Actual price) = Rs.8,070 – Rs. 8,520 = Rs. 450 (A) (ii) Mix variance = Total actual qty. (Std. cost per unit of std.mix – Std. cost per unit of actual mix) = 4,030 Kgs. (Rs. 1.975 – Rs. 2.002) = Rs. 110 (A) (iii) Sub usage variance = Std. price per unit of std. mix (Total std. qty – Total actual qty.) = Rs. 1.975 (4,000 – 4,030) = Rs. 60.00 (A) (iv) Total material cost variance = Std. cost – Actual cost = Rs. 7,900 – Rs.8,520 = Rs. 620 (A) Proof : Price variance + Mix variance + Sub-usage variance = Total variance Rs. 450 (A) + Rs. 110 (A) + Rs. 60 (A) = Rs. 620 (A) Note : ‘Mix variance’ and sub usage variance are sub-part of total usage variance which may be calculated as below: Usage variance = Std. price (Std. qty. – Actual qty.) = Standard cost – Standard cost of actual quantity = Rs. 7,900 – Rs. 8,070 = Rs. 170 (A) Ans.6 Basic data for calculation of Labour variances Category of Workmen Standard Weeks Rate Amount Rs. Rs. Skilled 3,000 60 1,80,000 Semi – Skilled 1,200 36 43,200 Unskilled 1,800 24 43,200 Total 6,000 2,66,400 Actual Rate Rs. Weeks 2,560 1,600 2,240 6,400 65 40 20 Amount Rs. 1,66,400 64,000 44,800 2,75,200 Calculation of Labour variances (1) Direct Labour Cost Variance Std. cost for actual output – Actual Cost =2,75,200 – 2,66,400 (2) (3) (a) Direct Labour Rate Variance Actual time (Std. rate – Actual rate) Skilled = 2,560 (60 – 65) Semi – Skilled =1,600 (36 – 40) Unskilled =2,240 (24 – 20) =Rs.8,800 (A) =Rs.12,800 (A) =Rs. 6,400 (A) =Rs. 8,960 (F) =Rs.10,240(A) Direct Labour Efficiency Variance Std. rate ( Std. time for actual output – Actual time) Skilled =60(3,000 -2,560 ) =Rs.26,400 (F) Semi – Skilled =36 (1,200 -1,600) =Rs.14,400 (A) Unskilled =24 (1,800 – 2,240) =Rs.10,560(A) Direct Material efficiency Variance can be further analysed into: Direct Labour Mix Variance Std. rate ( Revised Std. time – Actual time) Skilled =60(3,200 -2,560 ) Semi – Skilled =36 (1,280 -1,600) Unskilled =24 (1,920 – 2,240) * Revised Std. time =Rs.38,400 (F) =Rs.11,520 (A) =Rs. 7,680 (A) Skilled =6,400 x 3,000 6,000 =3,200 Semi- skilled =6,400 x 1,200 6,000 =1,280 Unskilled =6,400 x 1,800 6,000 (b) Direct Labour Revised Efficiency variance Std. rate ( Std. time for actual output –Revised Std. time) Skilled =60(3,000 -3,200 ) Semi – Skilled =36 (1,200 -1,280) Unskilled =24 (1,800 – 1,920) Summary of Labour variances Rate variance Efficiency variance (a) Mix variance (b) Revised efficiency variance Direct Material cost variance =Rs.1,440(F) =Rs.19,200 (F) =1,920 =Rs.12,000 (A) =Rs. 2,880 (A) =Rs. 2,880 (A) =Rs.17,760(A) (Rs.) 10,240 (A) 19,200 (F) 17,760 (A) Ans. 7: In a 40 hour week, the standard gang should have produced 1,000 std. hours as shown below: Gang: Skilled 16 No. of workers × 40 hrs. 640 Semi - skilled 6 No. of workers × 40 hrs. 240 Unskilled 3 No. of workers × 40 hrs. 120 1,440 (F) 8,800 (A) 1,000 hours However, the actual output is 900 standard hours. Hence to find out the total labour cost variance, the standard cost (or cost charged to production) is to be computed with reference to 900 standard hours. This is done in the following statement: Statement showing the Standard cost, Actual cost and Standard cost of Actual time for Actual output, i.e. 900 Standard hours. Gang Standard cost Actual cost Hours Rate Rs. Amount Rs. Hours Standard cost of Actual time Rate Amount Hours Rate Amount Rs Rs. Rs. Rs. Skilled 600 900 1000 Semi-skilled 240 576 3 1,728 14×40 = 560 2,240 560 3 1,680 9 × 40 = 360 3 1,080 360 2 720 2 × 40 = 80 2 160 80 1 80 3.48 3,480 1,000 2.48 2,480 900 1000 216 2 432 108 1 108 2,268 Unskilled 120 4 900 1000 900 2.52 1,000 Variances: (i) = Actual time (Std. rate – Actual rate) = (Standard cost of actual time – Actual cost) = Rs. 2,480 – Rs.3,480 = Rs. 1,000 (A) Rate variance (ii) Gang variance = Total actual time ( Std. rate of std. gang– Std. rate of actual gang) = 1,000 (Rs. 2.52 – Rs. 2.48) = Rs. 40(F) (iii) Sub-efficiency variance = Std. rate (Total std. time – Total actual time) = Rs. 2.52 (900 hours – 1,000) = Rs. 252 (A) (iv) Total labour cost variance = Std. labour cost – Actual labour cost = Rs. 2,268 – Rs. 3,480 = Rs. 1,212 (A) The gang composition variance may also be known as labour mix variance and is part of efficiency variance which may be computed as under: Efficiency variance = Std. rate (Std. time – Actual time) = Standard cost – Std. cost of actual time = Rs. 2,268 – Rs. 2,480 = Rs.212 (A) Ans. 8: Standard cost charged to production Rs. 5,000 (1,000 units× 2.5 hours × Rs.2) Actual wages paid Actual wage rate per hour (Rs. 4500÷2000) Std. wage rate per hour Abnormal idle time (25% of 2,000 hours) Variances : (i) Wage rate variance Rs. 4,500 Rs. 2.25 Rs. 2.00 500 hrs. = Actual time (Std.rate – Actual rate) = 2,000 hours (Rs.2 – Rs.2.25) = Rs.500 (A) (ii) Efficiency variance = Std. rate (Std.time – Actual time*) Rs.2 (2,500 hrs. –1500 hrs.) = Rs. 2,000 (F) (iii) Idle time variance = Idle time × Std.rate = 500 hrs. × Rs. 2 = Rs. 1,000 (A) (iv) Total variance = Std.labour cost – Actual labour cost Rs. 5,000 – Rs. 4,500 = Rs. 500 (F) *Actual time less idle time. Ans.9 Basic data for Standard and actual labour cost of producing 1,000 articles of ‘A’ and standard cost of actual labour hours Standard Cost Actual Cost Labour Hours Rate Amount Hours Rate Amount Std. cost of Rs. Rs. Rs. Rs. actual labour hours ( Actual hours x Std. rate)Rs Skilled 10,000 3.00 30,000 9,000 4.00 36,000 27,000 Semi – Skilled 8,000 1.50 12,000 8,400 1.50 12,600 12,600 Unskilled 16,000 1.00 16,000 20,000 0.90 18,000 20,000 Total 34,000 58,000 37,400 66,600 59,600 Calculation of Labour variances (1) Labour Cost Variance Std. cost – Actual Cost =Rs.58,000 – Rs.66,600 (2) Labour Rate Variance Actual Hours (Standard rate – Actual rate) OR Std. cost of actual hours – Actual Cost =Rs.59,600 – Rs.66,600 (3) =Rs.7,000 (A) Labour Efficiency Variance Std. rate of Std. mix (Total Std. hours for actual output – Total Actual hours) = (4) =Rs.8,600 (A) Rs. 58000 34000 37400 34000 =Rs.5,800(A) Labour Mix Variance Total actual hours ( Std. rate of standard mix – Std. rate of actual mix) = 34000 58000 59600 34000 37400 Summary of Labour variances Rate variance Efficiency variance Mix variance Labour Cost variance =Rs.4,200(F) (Rs.) 7,000 (A) 5,800 (A) 4,200 (F) 8,600 (A) Ans. 10: (i) Variable overhead variance: = (Standard variable overhead Actual variable overhead) = (Rs. 2,40,000 – Rs. 2,00,000) = Rs. 40,000 (Favourable) (Refer to Working note 1) (ii) Variable overhead budget variance: = (Budgeted variable overhead for actual hours – Actual variable overhead) = Rs. 2,24,000 – Rs. 2,00,000 = Rs. 24,000 (Favourable) (Refer to Working note 2) (iii) Variable overhead efficiency variance: = Standard variable overhead rate per hour [Std. hours for actual output – Actual hours] = Rs. 2 [1,20,000 hours – 1,12,000 hours] = Rs.2 × 8,000 hours = Rs. 16,000 (Favourable) Working notes: (1) Standard variable overhead = Standard cost of actual output = 20,000 units × 6 hours × Rs. 2 = Rs. 2,40,000 (2) Budgeted variable overhead (for actual hours) = 1,12,000 hours × Rs.2 = Rs.2,24,000 Ans. 11: Actual output = 9,000 units Idle time = 5,000 hours Production time (Actual) = 1,05,000 hours Standard hours for actual production = 10 hours / unit 9,000 units = 90,000 hours. Labour efficiency variance = 3,75,000 (A) i.e. Standard rate (Standard Production time – Actual production time) = 3,75,000(A). SR (90,000 – 1,05,000) = – 3,75,000 SR 3,75,000 15,000 Rs. 25 (i) Idle time variance = 5,000 hours 25 Rs. / hour = 1,25,000. (A) (ii) Standard Variable Overhead = Rs. 150 / unit Standard hours = 10 hours / unit Standard Variable Overhead rate / hour = 150 / 10 = Rs. 15 / hour Total Variable Overhead variance = Standard Variable Overhead – Actual Variable Overhead = Standard Rate Standard hours – Actual rate Actual hours = (15) (10 9,000) – 16,00,000 = 13,50,000 – 16,00,000 Total Variable Overhead Variance = 2,50,000 (A) (iii) Variable Overhead Expenditure Variance = (Standard Rate Actual Hours) – (Actual Rate = (15 1,05,000) – 16,00,000 = 15,75,000 – 16,00,000 Actual Hours) = (iv) Variable Overhead Efficiency Variance = Standard Rate 25,000 (A) (Standard Hours for actual output – Actual hours for Actual output) = 15 (90,000 – 1,05,000) = 15 (–15,000) = 2,25,000 (A) (b) Alternative Solution Actual Output = 9,000 Units Idle time = 5,000 hrs Direct Wages Paid = 1,10,000 hours @ Rs. 22 out of which 5,000 hours being idle, were not recorded in production. Standard hours = 10 per unit. Labour efficiency variance = Rs. 3,75,000 (A) or Standard Rate (Standard Time – Actual Time) = – 3,75,000 Or Standard Rate = Rs 25/(i) 25 Idle time variance = Standard Rate Idle time 5,000 = Rs 1,25,000 (A) (ii) Standard Variable Overhead / unit = 150 Standard Rate = 150 Rs.15/hour 10 Standard Quantity = 10 hours Actual Variable Overhead Standard Variable Overhead = 150 = 16,00,000 9,000 = 13,50,000 Actual Variable Overhead = 16,00,000 Total Variable Overhead Variance = 2,50,000 (A) (iii) Variable Overhead expenditure = Standard Variable Overhead for actual hours – Actual Variable Overhead = (150 1,05,000) – 16,00,000 = 15,75,000 – 16,00,000 = 25,000 (A) (iv) Variable overhead efficiency variance = Standard Variable Overhead for actual output Standard Variable Overhead for Actual hours) = 15 (10 hours 1,05,000) = 15 (90,000 – 1,05,000) = = 15 (–15,000) 2,25,000 (A) 90,000 units – Ans.12: Computation of standard cost and actual cost Standard Cost Direct Materials Direct Labour Variable Overheads Total standard Costs Actual Costs Direct Materials (6,000 x Rs.12) (6,000 x Rs.4.40) (6,000 x Rs.3) (a) (12,670meters x Rs.5.70) 72,000 26,400 18,000 1,16,400 – Direct Wages Variable Overheads Total Actual Costs Total Variance 72,219 27,950 20,475 1,20,644 4,244,(A) (b) (a)-(b) Computation of Missing figures (1) Actual Labour hours Standard variable overhead rate hour (Standard hours – Actual hours) = Rs.1,500 (A) Rs.1,500 A =Rs.3 (6,000 x 1 hour – Actual hours) Rs.1,500 A =Rs.18,000 –(Rs.3 x actual hours) (Rs.3 x Actual hours) =Rs.18,000 + Rs.1,500 Actual hours =Rs.19,500 / 3 = 6,500 hours (2) Actual Wage rate hour = Actual wages paid =Rs.27,950 Total Actual hours 6,500 hours Computation of Material Labour and Variable Overhead Variances 1. Material variances (1) Material Cost Variance Standard Cost- Actual Cost =(Rs.72,000 – Rs.72,219) (2) Material Price Variance Actual Quantity of Material consumed (Std, price- Actual Price) =12,670 meters (Rs.6- Rs.5.70) (3) Material Usage Variance Standard price (Standard Quantity –Actual Quantity) =Rs.6 (12,000 metres -12,670 metres) 2. Labour Variances =Rs.4.3 =Rs.219 (A) =Rs.3,801 (F) =Rs.4,020 (A) (1) Labour Cost Variance Standard Cost- Actual Cost =(Rs.26,400 – Rs.27,950) (3) Labour Rate Variance Actual hours (Std. wage rate per hour- Actual wage rate per hour) =6,500 hours (Rs.4.40- Rs.4.30) (3) Labour Efficiency Variance Standard rate per hour (Standard hours –Actual hours) =Rs.4.40 (6,000 hours- 6,500 hours) Variable Overhead Variances 3. =Rs.1,550 (A) =Rs.650 (F) =Rs.2,200 (A) (1) Total Variable overhead Variance Standard Variable Overhead- Actual Variable Overhead =Rs.18,000 – Rs.20,475 (4) Variable overhead Efficiency Variance Standard Variable overhead rate per hour (Std. hours for actual output-Actual hours) =Rs.3 ( 6,000 – 6,500) (3) Variable overhead Budget Variance Budgeted variable overhead –Actual variable overhead) =(Actual hours worked x Std. variable overhead per hour) – Actual variable overhead =(6,500 x Rs.3 ) – Rs.20,475 Note: (F) denoted Favourable Variance; (A) denoted Adverse Variance Ans 13: Working Notes : 1. Standard cost of raw-material consumed : Rs. Total standard cost of ZED (1,000 units × Rs.21) Less: Standard cost : Labour Rs. 21,000 8,000 =Rs.2,475 (A) =Rs.1,500 (A) =Rs.975 (A) Overheads 1,600 9,600 11,400 Standard cost of raw materials used 2. Standard cost of raw–material per finished unit. 3. Standard quantity of raw - material per finished unit and total quantity of raw material required: Total quantity – 3.8 kg. × 1,000 units = 3,800 kgs. 4. Total material cost variance : Actual cost of raw material Standard cost of raw material Rs.10,000 Rs.11,400 Total material cost variance 5. Actual quantity (A Q) of raw–material (in kgs): Rs. 1,400 (F) Material usage variance = Standard rate (Standard quantity – Actual quantity). or, Rs. 600 (A) = Rs. 3 (3,800 Kgs. – AQ) or, 3AQ = 12,000 kgs. or, AQ = 4,000 kgs. (Material usage variance is as given in the question and standard quantity is as per (3) above ) 6. Actual rate of raw material per kg 7. Standard direct labour rate Standard direct labour hours = 1,600 (given) Standard direct labour cost 8. Actual labour cost and actual labour rate per hour: Actual total cost of 1,000 units 1,000 units (Rs. 21 + Re. 0.07) Less : Actual cost of material Actual variable overheads Actual direct labour cost Rs. 10,000 Rs. 1,62 = Rs. 8,000 (given) Rs. 21,070 Rs. 11,620 Rs. 9,450 9. Standard labour hours to produce one unit: 10. Standard labour cost per unit: Standard labour cost per unit = 1.6 hours × Rs. 5 = Rs.8 11. Actual hourly rate of variable overheads (a) : Standard qu antity of raw material per unit of ZED : 3.8 kg. (Refer to working note 3). (b) Standard direct labour rate per hour Rs. 5 (Refer to working note 7). (c) Standard direct material cost per unit of ZED : Rs. 11.40 (Refer to working note 2 ) . (d) Standard direct labour cost per unit of ZED: Rs. 8 (Refer to working note 10). (e) Standard total material cost for the output: Rs. 11,400 (Refer to working note 1). (f) Actual total direct labour cost for the output: Rs. 9,450 (Refer to working note 8). (g) Material price variance = Total material cost variance – Material usage variance. = Rs. 1,400 (favourable)* – Rs. 600 (Adverse) (*Refer to working note 4) = Rs. 2000 (Favourable) Alternatively, = Actual quantity (Standard rate – Actual rate) = 4,000 units (Rs. 3 – Rs. 2.50)* (* Refer to working note 6) = Rs. 2,000 (Favourable) (h) Labour rate variance: = Actual hours (Standard rate – Actual rate) = 1,800 hours (Rs. 5 – Rs. 5.25) = Rs. 450 (Adverse) (i) Labour efficiency variance: (j) Standard rate (Standard hours – Actual hours) = Rs. 5 per hour (1,600 hours – 1,800 hours) = Rs. 1,000 (Adverse) Variable overhead expenditure variance : = Actual hours (Standard rate – Actual rate) = 1,800 hours (Re. 1 – Re. 0.90)* = Rs. 180 (Favourable) (*Refer to working note) (k) Variable overhead efficiency variance = Standard rate (Standard hours – Actual hours) = Re. 1 per hour (1,600 hours – 1,800 hours) = Rs. 200 (Adverse) Ans. 14: Budgeted daily hours per day of June = 12000hrs 500hrs / day 24...
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