the output for the month was sold at rs 54 per kg you are required to prepare a comp 608623
In a chemical manufacturing company, production is carried on in batches. Details of standard input of materials, labour and overheads are as follows:
Standard input of materials per batch of 1,000 kg:
A: |
60% of input at Rs. 15/kg |
B: |
20% of input at Rs. 20/kg |
C: |
20% of input at Rs. 25/kg |
Labour: |
1,200 hrs per batch @ Rs. 10 per hour. |
Variable overhead: |
Rs. 2 per kg. |
Fixed overhead: |
Rs. 50,000 per month. |
Selling price: |
Rs. 50 per kg. |
Std. production per months: |
10 batches (No process loss). |
Actual details for November were as follows: |
|
No. of batches processed: |
8 |
Materials consumed: |
X – 5,000 kgs – Rs. 76,000. |
Y – 1,500 Kgs – Rs. 30,000 |
|
Z – 1,500 Kgs – Rs. 48,000 |
|
Labour engaged for 9,800 hrs and wages paid: |
Rs. 95,000. |
Variable overhead: |
Rs. 15,000. |
Fixed overhead: |
Rs. 52,000. |
The output for the month was sold at Rs. 54 per kg. You are required to prepare a comprehensive management report on the variance for the period.