3080 57200 5280 13760 Clearing 3920 7000 130000 12000 151000 President\'s Salary

ID: 2600153 • Letter: 3

Question

3080 57200 5280 13760 Clearing 3920 7000 130000 12000 151000 President's Salary Other 72800 6720 164760 Net Income Determine whether Computer Village should discontinue the furniture line and the financial benefit (Cost) of dropping it. Qs 3 Standard hours for manufacturing two products M and N are 15 hours per unit and 20 hours per unit respectively. Both products require identical kind of labor and the standard wage rate per hour is Rs 5. In the year 2016, 10,000 units of M and 15,000 units of N were manufactured. The total of labor hours actually worked were 4,50,000 and the actual wage bill came to Rs 23,00,000. This included 12,000 hours for@ Rs 7 per hour and 9,400 hours paid for @ Rs 7.50 per hour, the balance having been paid at Rs 5 per hour Compute the labor cost, labor rate and labor efficiency variance. SECTIONC Q1. Read the facts extracted from Annual Report of Tata Motors Limited (Rs. In crores) 2009-10 2008-09 Particulars A Financial Results

Explanation / Answer

WORKINGS

= $ 2145500

Product n = 15000 x 20 hrs = 300000

Total std = 450,000 hours

WAGE RATE COST & EFFICIENCY

ACTUAL COST (WORKINGS 1 )

2145500

Actual hours ( workings 2)

450000

-21400

$2500ADV

Rate variance

428600 x $5

2143000

Actual units x std hours x std rate

( workings 3 )

450000 x $5

2250000

107000 fav

Efficiency variance

TOTAL COST VARIANCE

$104500 FAV