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case study, Other Engineering

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M/s XYZ Ltd manufactures a product “PLVS” at its plant at Meerut, the maximum capacity of which is 200 units per month. Details of raw materials which go into the making of 1 units of “PLVS” are provided to you below:-
Sl.No Raw material description Standard Qty per finished unit (No) Standard purchase price per unit (Rs. 00)
1 A 1 6
2. B 2 5
3. C 3 4
4. D 4 3
5. E 5 2
6. F 6 1

Standard fixed overheads are Rs. 20,00,000/- per month whereas the standard variable overhead rate has been estimated as equal to Rs.1,400/- per unit of finished good.

You are required to compute the
a) Standard cost of the product.
b) Compute the production volume variance in case the company produces and sells only 100 units of finished goods in the concerned month.
c) Compute the usage and material price variances considering the following actual data (actual production and sale: 100 units)

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