The following details were extracted from the standard cost card of a component:
Raw Materials
2.82 Kgs @ Rs.4.80 Kg.
Direct Labour
Type I 6.5 hrs @ Rs.3.75
Type II 3.85 hrs @Rs. 4.25
During a period original results were as follows:
Production 1,100 components.
Direct Material Purchase and usage
3,200 Kgs at a cost of Rs.15,100
Wages Paid
Type I (7,120 hrs ) Rs.27,056
Type II (4,235) Rs. 18,210
Requirement: You are needed to calculate what variances have arisen.