Excel Toys Industry manufactures plastic toys with the following material and labour standards: Standard quantity Standard cost Material 0.2 kg Rs. 60 per kg Labour 12 minutes Rs. 200 per labour hour Variable overheads Labour base time Rs. 150 per labour hour During the month of January 24,000 kg of material was procured on account at Rs. 50 per kg. During January 14,400 kgs of the material was used in production of 80,000 toys. The payroll for January indicates 16,500 direct labour hours at the total cost of Rs. 3,135,000. The variable overheads amounted to Rs. 1,947,000 during the month of January. Required a. Compute material price and material quantity variances for the month of January. b. Compute labour rate and the labour efficiency variance for the month of January. c. Work out the overheads rate and efficiency variance for the month of January. d. Based on above variances evaluate the performance of concerned manager responsible and describe how they should be responded by the top management of the organization.

Question No. 05. Excel Toys Industry manufactures plastic toys with the following material and labour standards: Standard quantity Standard cost Material 0.2 kg Rs. 60 per kg Labour 12 minutes Rs. 200 per labour hour Variable overheads Labout base time Rs. 150 per lebaut hour During the month of January 24,000 kg of material was procured on account at Rs 50 per kg. During January 14.400 kgs of the material was used in production of 80,000 toys. The payroll for January indicates 16.500 direct labour hours at the total cost of Rs. 3,135,000. The variable overheads amounted to Rs. 1.947.000 during the month of January I Required a. Compute material price and material quantity variances for the month of January. b. Compute labour rate and the labour efficiency variance for the month of January C Work out the overheads rate and efficiency variance for the month of January d. Based on above variances evaluate the performance of concerned manager responsible and describe how they should be responded by the top management of the organization (Marks 06)