In a chemical manufacturing company, production is carried on in batches. Details of standard input of materials, labour and overheads are as follows:

Standard input of materials per batch of 1,000 kg:


60% of input at Rs. 15/kg


20% of input at Rs. 20/kg


20% of input at Rs. 25/kg


1,200 hrs per batch @ Rs. 10 per hour.

Variable overhead:

Rs. 2 per kg.

Fixed overhead:

Rs. 50,000 per month.

Selling price:

Rs. 50 per kg.

Std. production per months:

10 batches (No process loss).

Actual details for November were as follows:

No. of batches processed:


Materials consumed:

X – 5,000 kgs – Rs. 76,000.

Y – 1,500 Kgs – Rs. 30,000

Z – 1,500 Kgs – Rs. 48,000

Labour engaged for 9,800 hrs and wages paid:

Rs. 95,000.

Variable overhead:

Rs. 15,000.

Fixed overhead:

Rs. 52,000.

The output for the month was sold at Rs. 54 per kg. You are required to prepare a comprehensive management report on the variance for the period.