Neptune Limited (NL) is engaged in the production of a single product Lunar-1 and uses standard...

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Neptune Limited (NL) is engaged in the production of a single product Lunar-1 and uses standard absorption costing system. NL has total production capacity of 6,250 units per month whereas it operates at a normal capacity of 80%. Following information pertains to the month of August 2022: Standard cost card per unit: Sales and production data: Direct material (8 kg at Rs. 30 per kg) Direct labour (6 hours at Rs. 25 per hour) Overheads (Rs. 20 per labour hour) "include budgeted fixed overheads of Rs. 200,000. (0) (i) Additional information: Budgeted selling price per unit Budgeted sales Actual sales Actual production (iii) (iv) Rs. Units Units Units Rupees 240 150 120 700 4,000 5,200 5,400 There was no inventory at the beginning of the month. 50,000 kg direct material was purchased in bulk in order to avail discount of Rs. 150,000. Actual material loss was 10% as against the budgeted loss of 6%. Workers' wages were increased by 10% effective from 1 August 2022 due to prevailing high inflation. This increased workers' efficiency by 5% as compared to the budget. (v) Actual overheads (both fixed and variable) amounted to Rs. 720,000. Fixed overheads were over absorbed by Rs. 30,000. Required: (a) Compute the budgeted profit for the month of August 2022 using standard marginal costing. (05) Neptune Limited (NL) is engaged in the production of a single product Lunar-1 and uses standard absorption costing system. NL has total production capacity of 6,250 units per month whereas it operates at a normal capacity of 80%. Following information pertains to the month of August 2022: Standard cost card per unit: Sales and production data: Direct material (8 kg at Rs. 30 per kg) Direct labour (6 hours at Rs. 25 per hour) Overheads (Rs. 20 per labour hour) "include budgeted fixed overheads of Rs. 200,000. (0) (i) Additional information: Budgeted selling price per unit Budgeted sales Actual sales Actual production (iii) (iv) Rs. Units Units Units Rupees 240 150 120 700 4,000 5,200 5,400 There was no inventory at the beginning of the month. 50,000 kg direct material was purchased in bulk in order to avail discount of Rs. 150,000. Actual material loss was 10% as against the budgeted loss of 6%. Workers' wages were increased by 10% effective from 1 August 2022 due to prevailing high inflation. This increased workers' efficiency by 5% as compared to the budget. (v) Actual overheads (both fixed and variable) amounted to Rs. 720,000. Fixed overheads were over absorbed by Rs. 30,000. Required: (a) Compute the budgeted profit for the month of August 2022 using standard marginal costing. (05)

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