## Answers

Question-1 | ||||

1 | Standard labor hours allowed | 2800 | =7000*0.4 | |

2 | Standard labor cost allowed | 26040 | =2800*9.3 | |

3 | Labor spending variance | 960 | U | =27000-26040 |

4 | Labor rate variance | 1890 | U | =27000-(2700*9.3) |

Labor efficiency variance | 930 | F | =9.3*(2800-2700) | |

Question-2 | ||||

1 | Standard quantity of labor hours allowed | 6000 | =200000*0.03 | |

2 | Standard variable overhead cost allowed | 21900 | =6000*3.65 | |

3 | Variable overhead spending variance | 10140 | U | =32040-21900 |

4 | Variable overhead rate variance | 445 | F | =32040-(8900*3.65) |

Variable overhead efficiency variance | 10585 | U | =3.65*(8900-6000) |

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