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  • 03 21 23 PGDM Variance Analysis

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    KS
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    The document provides information about a bag manufacturing company's production plan and actual results for January 2022. The company planned to produce 500 bags but actually produced 600 bags, consuming 1,000 square meters of cloth and 580 meters of zip. Labor hours were 150, with wages of Rs. 42,000 paid. Power cost was planned as Rs. 12 per hour but Rs. 1,500 was actually paid. Rent was planned at Rs. 10,000 but Rs. 11,000 was paid. Bags were sold at Rs. 520 each rather than the planned Rs. 500. Variances are to be calculated for materials, labor, overhead and sales.

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    Variance analysis

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    The document provides information about a bag manufacturing company's production plan and actual results for January 2022. The company planned to produce 500 bags but actually produced 600 bags, consuming 1,000 square meters of cloth and 580 meters of zip. Labor hours were 150, with wages of Rs. 42,000 paid. Power cost was planned as Rs. 12 per hour but Rs. 1,500 was actually paid. Rent was planned at Rs. 10,000 but Rs. 11,000 was paid. Bags were sold at Rs. 520 each rather than the planned Rs. 500. Variances are to be calculated for materials, labor, overhead and sales.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    17 views1 page

    03 21 23 PGDM Variance Analysis

    Uploaded by

    KS
    The document provides information about a bag manufacturing company's production plan and actual results for January 2022. The company planned to produce 500 bags but actually produced 600 bags, consuming 1,000 square meters of cloth and 580 meters of zip. Labor hours were 150, with wages of Rs. 42,000 paid. Power cost was planned as Rs. 12 per hour but Rs. 1,500 was actually paid. Rent was planned at Rs. 10,000 but Rs. 11,000 was paid. Bags were sold at Rs. 520 each rather than the planned Rs. 500. Variances are to be calculated for materials, labor, overhead and sales.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Thiagarajar School of Management, Madurai

    Variance Analysis
    A bag manufacturing Company is having a standard requirement of 2 Square
    metres of cloth and 1 metre of zip for manufacturing a handbag. 4 bags can be
    produced by spending an hour of labour. Cloth were agreed to be purchased at
    Rs. 60 per square metre and Zip is agreed for Rs. 20 per metre. Labours are paid
    wages at Rs. 300 per hour.
    For the month of January 2022, the company planned to produce 500 bags but in
    actual they produced 600 bags after consuming 1,000 square metres of cloth
    purchased at Rs. 62 per square meter. 580 metres of Zip were consumed which
    were purchased at Rs. 11,310.
    Labours were paid total wages of Rs. 42,000 for spending 150 hours in production
    Power cost is planned at Rs. 12 per Labour hours but in actual amount paid was
    Rs. 1,500
    Rent for the month is planned at Rs. 10,000 and recovered at Rs. 20 per bag.
    Actual rent paid is Rs. 11,000
    Marketing Manager is able to sell all the units produced at a price of Rs. 520 per
    bag whereas the planned price is Rs. 500 per bag
    You are required to calculate all the possible variances

    PGDM MCA 2021-23 – Questions for Class Discussion Page 4

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