Instructions

Answer the questions with the given information and the data.

The figures given below show the amount of work distribution (in operational hours) for a toy manufacturing company having manufacturing plants in Chennai and Kanpur. Each plant carries out six activities. Planned operational cost per hour of Chennai and Kanpur plants are ₹ 250 and %₹300 respectively. However, the actual operational cost per hour is ₹ 270 in Chennai and ₹ 315 in Kanpur.

Cost Difference (in %)=Absolute ((Actual Cost —- Planned Cost) / Planned Cost) x 100

Question 69

Overall Cost difference in Chennai plant is approximately :

Solution

Planned cost in chennai = 1032 * 250=258000

Actual cost in chennai = 1350 * 270 = 364500

Cost difference = (106500/258000)*100 = 41%

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Overall Cost difference in Chennai plant is approximately :

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