1. ABC Ltd. maintains their books of Cost Accounts under standard costing system in which the work-in-progress is debited with actual costs and credited with standard costs. The standard cost card for product X shows:
Cost per unit (Rs.)
Direct material 1pc @ Rs. 1.50 150
Direct labour 3hrs @ Re. 1.00 3.00
Factory overhead 3 hrs- n" Rs. 2_50 7.50
12.00
Based on Budgeted Factory overhead Its 7,500 and budgeted Labour hours 3,000.
The following cost and production data are available for the month of March, 1998 in respect of product X.
Cost data
1. Actual materials used in production 1100 pcs @ Rs. 1.60
2. Analysis of pay Roll shows direct labour hrs. 2700pcs @ Rs. 1.20
3. Factory overhead as per Factory 0.H control account Rs. 7. 425
(to be charged to product X)
Production data
Units completed 950 units
Units in closing WIP 100 units 50% completed
Cost of units remaining work- in- progress Account is transferred to work- in- progress Inventory Account You are required to compute all possible variances.
2. As a Manager what strategy you will adopt so that you are able to efficiently manage the cash in business?
3. Visit an organization of your choice and find out the investment appraisal methods that the organization follows. Write a note on your visit