Hilfy textiles Ltd. has been a major player in the textile industry, producing high-quality polyester mix cotton fabric. The production process is…

Hilfy textiles Ltd. has been a major player in the textile industry, producing high-quality polyester mix cotton fabric. The production process is complex and involves multiple stages, including spinning, weaving, quality control, and packaging. The company has been facing challenges in controlling costs and maintaining profitability, mainly due to fluctuating material costs and labor inefficiencies. To address these challenges, the company's management has decided to implement a standard costing system to better manage costs, set benchmarks, and identify variances. The goal is to gain better control over production costs, improve budgeting accuracy, and enhance decision-making. Hilfy textiles Ltd. had prepared the following estimation for the month of April: Quantity/Time Rate (₹) Amount (₹) Cotton 8,000 m 50.00 4,00,000 Polyester 6,000 m 40.00 2,40,000 Skilled labour 1,000 hours 37.50 37,500 Unskilled labour 800 hours 22.00 17,600 Normal loss was expected to be 10% of total input materials and an idle labour time of 5% of expected labour hours was also estimated. At the end of the month the following information has been collected from the cost accounting department: The company has produced 14,800 m finished product by using the followings: Quantity/Time Rate (₹) Amount (₹) Cotton 9,000 m 48.00 4,32,000 Polyester 6,500 m 37.00 2,40,500 Skilled labour 1,200 hours 35.50 42,600 Unskilled labour 860 hours 23.00 19,780 On the basis of analysis of standard costing system, company's management wants to take actions like supplier negotiation, process optimisation, employee training, etc. Being the cost manager of the company, you are required to answer the following five requirements of the management: