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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
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:
- Material quantity variance.
- Material price variance.
- Labor efficiency variance.
- Labor rate variance.
- Factory overhead controllable variance.
- Factory overhead volume variance.

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