SARA Ltd. has furnished the following standard cost data per' unit of production: Material 15 kg @15 per kg.Labour 6 hours @5 per hourVariable…

Standard Cost Card per unit: Material: 15 kg × ₹ 15 = 225Labour: 6 hours × ₹ 5 = 30Variable Overhead: 6 hours × ₹ 12 = 72Fixed Overhead: (₹ 4,50,000 / 30,000 hours) × 6 hours = 15 × 6 = 90 Standard Quantity/Hours for Actual Production (4,800 units): Standard Material Quantity = 4,800 units × 15 kg = 72,000 kgStandard Labour Hours = 4,800 units × 6 hours = 28,800 hours Actual Data: Actual Material Quantity = 65,000 kgActual Material Cost = 9,85,000Actual Labour Hours = 31,500 hoursActual Labour Cost = 1,40,000Actual Variable Overhead = 3,60,200Actual Fixed Overhead = 4,70,000 (i) Material Cost Variance = (Standard Quantity × Standard Price) – (Actual Quantity × Actual Price) = (72,000 kg × ₹ 15) - 9,85,000 = 10,80,000 - 9,85,000 = 95,000 (Favourable) (ii) Labour Cost Variance = (Standard Hours × Standard Rate) – (Actual Hours × Actual Rate) = (28,800 hours × ₹ 5) - 1,40,000 = 1,44,000 - 1,40,000 = 4,000 (Favourable) (iii) Fixed Overhead Cost Variance = (Budgeted Rate × Actual Quantity) – Actual Overhead = (₹ 90 × 4,800 units) - 4,70,000 = 4,32,000 - 4,70,000 = 38,000 (Adverse) OR = (Budgeted Rate × Standard Hours) – Actual Overhead = (₹ 15 × 28,800 hours) - 4,70,000 = 4,32,000 - 4,70,000 = 38,000 (Adverse) (iv) Variable Overhead Cost Variance = (Standard Rate × Standard Hours) – Actual Overhead = (₹ 12 × 28,800 hours) - 3,60,200 = 3,45,600 - 3,60,200 = 14,600 (Adverse)