The following information was obtained from the records of a manufacturing unit using standard-costing system.
|
Standard |
Actual |
|
|
Working days (days) |
20 |
21 |
|
Production (units) |
4,000 |
3,000 |
|
Fixed overhead (Rs.) |
40,000 |
39,000 |
|
Variable overhead (Rs.) |
12,000 |
12,000 |
You are required to calculate the following overhead variances:
- Variable-overhead variance:
- Fixed-overhead variance:
- Expenditure variance
- Volume variance
- Efficiency variance
- Calendar variance
- Also prepare a reconciliation statement for the standard fixed expenses worked out at the standard fixed overhead rate and actual fixed overhead