Based on the information given below, answer the questions which follow. 04

Kruger Corporation has recently implemented a standard cost system. The management has obtained the following information for variance analysis:

A. Standard cost information:

Direct materials	= Rs. 5 per kg.
Quantity allowed per unit	= 100 kg per unit
Direct labour rate	= Rs. 20 per hour
Hours allowed per unit	= 2 hour per unit
Fixed overhead budget	= Rs. 12,000 per month
Normal level of production	= 1,200 units
Fixed overhead application rate	= Rs. 10 per unit
Variable overhead applicable rate	= Rs. 2 per unit
Total overhead applicable rate	= Rs. 12 per unit

B. Actual cost information:

Cost of material purchased and consumed	= Rs. 4,68,00
Quantity of material purchased & consumed	= Rs. 1,04,00 kg
Cost of direct labour	= Rs. 46,480
Hours of direct labour	= 2240 Hrs.
Cost of variable overhead	= Rs. 2,352
Cost of fixed overhead	= Rs. 12,850
Volume of production	= 1000 units

Q. What is the direct materials price variance, given an actual price of Rs. 4.50 per kg?