A company manufacturing two products uses standard costing system. The following data relating to August 2007 have been furnished to you:

Particulars

Product A

Product B

Standard Cost Per Unit –Direct Materials

Rs.2

Rs.4

Direct Wages

Rs.8

Rs.6

Fixed Overheads

Rs.16

Rs.12

Total

Rs.26

Rs.22

Units processed/in process

 

 

 

Particulars

Product A

Product B

Beginning of tand 50% comoverheads

he month, all materials applied plete in respect of labour and

4, 000

12, 000

End of the month, all materials applied and 80% complete in respect of labour and overheads

8, 000

12, 000

Units completed and transferred to warehouse during the month

16, 000

20, 000

You may use average cost method to analyse

The following were the actual costs recorded during the month.

Direct materials purchased at standard price amount to Rs.2, 00, 000 and actual cost of which is

Rs.2, 20, 000. Direct materials used for consumption at standard price amount to Rs.1, 75, 000. Direct wages for actual hours worked at standard wages rates were Rs.4, 20, 000 and at actual wages rate were Rs.4, 12, 000.

Fixed overheads budgeted were Rs.8, 25, 000 and actual fixed overheads incurred were Rs.8, 50, 000.

Required,

I. Direct material price variance at the point of consumption and at the point of purchase

II. Direct material usage variance

III. Direct wage rate and efficiency variance

IV. Fixed overheads volume and expenditure variance

V. Standard cost of WIP at the end of the month.