Koyna Jal manufactures and sells a special energy drink for sports players. The organization follows a policy of charging 20% profit on its selling price, and has estimates of sales revenue of Rs. 302.4 lakh during the year. For producing one litre of energy drink it requires 6 litres of Juice and 3 kg of Sugar and processing time of 4 hours in boiler and 2 more hours in of further processing. Factory overheads vary and are absorbed at a blanket rate of 20% of direct labor. Variable selling & distribution overheads are 60 per unit sold and fixed selling & distribution overheads are estimated to be Rs. 69,12,000 for the year. There is no wastage in the manufacturing process. The other relevant details are as under: Purchase Price: Labor Rate: Opening Stock Closing Stock REQUIRED: Juice Sugar Boiler Processing Finished Stock 2,500 Litre 3,000 Litre ******** Rs. 160 per Litre Rs. 100 per kg Rs. 140 per hour Rs. 70 per hour Juice 7,500 Litre 8.000 Litre Sugar 4,000 kg 5,500 kg A. Calculate number of litres of the drink proposed to be sold and price per litre. [5 Marks] B. Prepare Production Budget in Units. [2 Marks] C. Prepare Material Purchase Budget in units and in Rupees. 3 ***** [4 Marks] D. Monthly Labour requirement and overall Labour Cost Budget. 14 Marks] E. How can variance analysis be used as a tool of performance management? Explain based on your readings and learning in this course. 15 marks] Koyna Jal manufactures and sells a special energy drink for sports players. The organization follows a policy of charging 20% profit on its selling price, and has estimates of sales revenue of Rs. 302.4 lakh during the year. For producing one litre of energy drink it requires 6 litres of Juice and 3 kg of Sugar and processing time of 4 hours in boiler and 2 more hours in of further processing. Factory overheads vary and are absorbed at a blanket rate of 20% of direct labor. Variable selling & distribution overheads are 60 per unit sold and fixed selling & distribution overheads are estimated to be Rs. 69,12,000 for the year. There is no wastage in the manufacturing process. The other relevant details are as under: Purchase Price: Labor Rate: Opening Stock Closing Stock REQUIRED: Juice Sugar Boiler Processing Finished Stock 2,500 Litre 3,000 Litre ******** Rs. 160 per Litre Rs. 100 per kg Rs. 140 per hour Rs. 70 per hour Juice 7,500 Litre 8.000 Litre Sugar 4,000 kg 5,500 kg A. Calculate number of litres of the drink proposed to be sold and price per litre. [5 Marks] B. Prepare Production Budget in Units. [2 Marks] C. Prepare Material Purchase Budget in units and in Rupees. 3 ***** [4 Marks] D. Monthly Labour requirement and overall Labour Cost Budget. 14 Marks] E. How can variance analysis be used as a tool of performance management? Explain based on your readings and learning in this course. 15 marks] Koyna Jal manufactures and sells a special energy drink for sports players. The organization follows a policy of charging 20% profit on its selling price, and has estimates of sales revenue of Rs. 302.4 lakh during the year. For producing one litre of energy drink it requires 6 litres of Juice and 3 kg of Sugar and processing time of 4 hours in boiler and 2 more hours in of further processing. Factory overheads vary and are absorbed at a blanket rate of 20% of direct labor. Variable selling & distribution overheads are 60 per unit sold and fixed selling & distribution overheads are estimated to be Rs. 69,12,000 for the year. There is no wastage in the manufacturing process. The other relevant details are as under: Purchase Price: Labor Rate: Opening Stock Closing Stock REQUIRED: Juice Sugar Boiler Processing Finished Stock 2,500 Litre 3,000 Litre ******** Rs. 160 per Litre Rs. 100 per kg Rs. 140 per hour Rs. 70 per hour Juice 7,500 Litre 8.000 Litre Sugar 4,000 kg 5,500 kg A. Calculate number of litres of the drink proposed to be sold and price per litre. [5 Marks] B. Prepare Production Budget in Units. [2 Marks] C. Prepare Material Purchase Budget in units and in Rupees. 3 ***** [4 Marks] D. Monthly Labour requirement and overall Labour Cost Budget. 14 Marks] E. How can variance analysis be used as a tool of performance management? Explain based on your readings and learning in this course. 15 marks]