Direct Material Per Day(DM)

Material Price/unit Number of unit Total(Rs)

Tea leaves 134 2 268
Condensed milk 40 20 800
Sugar 43 5 215
coffee 117 1 117
TOTAL 1400

Direct Material Per Year = 1400*365 = 511000 Rs

Direct Labour(DL)

Labour charge per day =120 Rs

Labour charge per year = 120*365=43800 Rs

Calculating manufacturing overhead(MOH)

Monthly stall rent = 8000 Rs

Yearly rent=8000*12=96000 Rs

Monthly bill=1500 Rs
Yearly electricity bill = 1500*12= 18000 Rs

Monthly cylinder price=2400 Rs

Yearly cylinder price=2400*12=28800 Rs

Cylinder delivery cost per year= 1680 Rs

Cleaning cost per year =11400

Insurance of the stall is rs 10000 per year

TOTAL COST= DM+DL+MOH= 720680 Rs

Profit is 20% of the total cost

Daily milk tea production = 500