Razdan & Co. manufactures a new product. It had to revise its standard cost owing to temporary distortions caused to its standards by uncontrollable factors. During that month, it manufactured 1,000 kgs of the product. The following price details are available from its records for the month of March.
|
Materials |
Standard Cost Rs. |
Revised Standard Cost Rs. |
Actual Cost Rs. |
|
700 kgs@ Rs. 10 = 7,000 |
700 kgs @ Rs. 12 =6400 300 kg@ Rs.25 = 7,500 |
700 kgs@ Rs. 15 = 10,500 |
|
13,000 |
15.900 |
19,500 |
You are required to compute material variances.