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

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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


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