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Q. 1. SV LTD produces two products X & Y.Both are produced on the same equipment and use
similarprocesses.The products differ by volume.Product X is a high -volume product, while Y is a
lowvolume product.Following details are available (10 m)
Products Machine hours per Annual output No. of purchase No. of set ups
unit orders
X 2 1000 80 40
Y 2 10000 160 60
The Cost Centre costs are Rs.4,40,000,but have been further analysed as follows
Q. 2. Sweetwater Company manufactures two products, Mountain Mist. The company prepares its master
budget on the basis of standard costs. The following data are for March: (10 m)
Indicate whether the variances are favorable (F) or unfavorable (U) to the performance of the plant.
Required:
a. Calculate the direct materials price variance.
b. Calculate the direct materials usage variance.
c. Calculate the direct labor rate variance.
d. Calculate the direct labor efficiency variance.
e. Calculate the variable overhead spending variance.
f. Calculate the variable overhead efficiency variance.