Anju Limited produces a product 'Pect' which is sold in a 10 Kg. packet. The standard cost card per packet of 'Pect' are as follows: Particulars ₹…

Material Usage Variance = Std. Price (Std. Quantity – Actual Quantity) = 45 (9,000 kgs. – 8,900 kgs.) = 4,500 (Favourable) Material Price Variance = Actual Quantity (Std. Price – Actual Price) = 8,900 kgs. (₹ 45 - 46) = 8,900 (Adverse) Material Cost Variance = Std. Material Cost – Actual Material Cost = (SQ × SP) – (AQ × AP) = (9,000 kgs. × ₹ 45) – (8,900 kgs. × ₹ 46) = 4,05,000 - 4,09,400 = 4,400 (Adverse) Labour Efficiency Variance = Std. Rate (Std. Hours – Actual Hours) = 50 (9,000/10 hours – 7,000 hrs.) = 50 (7,200 hrs. – 7,000 hrs.) = 10,000 (Favourable) Labour Rate Variance = Actual Hours (Std. Rate – Actual Rate) = 7,000 hrs. (₹ 50 - 52) = 14,000 (Adverse) Labour Cost Variance = Std. Labour Cost – Actual Labour Cost = (SH × SR) – (AH × AR) = (7,200 hrs. × ₹ 50) – (7,000 hrs. × ₹ 52) = 3,60,000 - 3,64,000 = 4,000 (Adverse) Variable Overhead Cost Variance = Std. Overhead for Actual Production - Actual Variable Overhead Cost = (7,200 hrs. × ₹ 10) - 72,500 = 500 (Adverse) Fixed Overhead Cost Variance = Absorbed Fixed Overhead – Actual Fixed Overhead = (₹ 200/10 kgs.) × 9,000 kgs. - 1,92,000 = 1,80,000 - 1,92,000 = 12,000 (Adverse)