3. During half year ending inter departmental review meeting of P Ltd., cost variance report was discussed and the performance of the departments…

3. During half year ending inter departmental review meeting of P Ltd., cost variance report was discussed and the performance of the departments were assessed. The following figures were presented. For a period of first six months of the financial year, following information were extracted from the books: Actual production overheads 34,08,000 The above amount is inclusive of the following payments made: Paid as per court's order 4,50,000 Expenses of previous year booked in current year 1,00,000 Paid to workers for strike period under an award 4,20,000 Obsolete stores written off 36,000 Production and sales data for the six months are as under: Production: Finished goods 1,10,000 units Works-in-progress 80,000 units (50% complete in every respect) Sale: Finished goods 90,000 units Machine worked during the period was 3,000 hours. At the of preparation of revenue budget, it was estimated that a total of 50,40,000 would be required for budgeted machine hours of 6,000 as production overheads for the entire year. During the meeting, a data analytic report revealed that 40% of the over/under-absorption was due to defective production policies and the balance was attributable to increase in costs. You were also present at the meeting; the chairperson of the meeting has asked you to be ready with the followings for the performance appraisal of the departmental heads: