Jasmine Limited makes a single product, X, using a single raw material P. Standard costs relating to X have been calculated as follows
Standard cost schedule
| per unit (RS) | |
| Direct material, P, 100kg at Rs.5 per kg | 500 |
| Direct labour, 10 hours at Rs.8 per hour | 80 |
| Variable production overhead, 10 hours at Rs.2 per hour | 20 |
| Fixed production overhead, 10 hours at Rs.1 per hour | 10 |
| Standard cost | 610 |
| Standard profit | 290 |
| Standard selling price | 900 |
Relevant details of this production are as follows.
- >Company expects to produce 1020 units in month of December 2020.
- >During December, 1000 units of product X were produced and sold at Rs. 975,000
- >90000 kgs costing Rs.720000 were bought and used.
- >8200 hours were worked during the month and total wages were Rs. 63,000.
- >The actual variable production overhead for the month was Rs. 25,000.
- >The actual fixed production overhead for the month was Rs. 9,800.
- >Actual profit was Rs. 157,200.
- 1. Calculate the following for the month of December 2020.
- 1. Sales price variance and sales volume variance
