Objective Planning and establishment of the irrigation set up for Reliance Fresh Ltd in 400 Ha within the span

of 18 months with the budget of Rs. 4 crore at Nagothane (Maharashtra) and Jamnagar (Gujarat) Sr.No. Activity Timeline Activity 1 Surveying the area for mapping 60 days A 2 PreparaTion of MAP 10 days B 3 Purchasing of the materials 110 days C 4 Establishment of subsurface tanks 90 days D 5 Establishing the fertigation units 30 days E 6 Laying down the parent line 40 days F 7 Laying down the main line 60 days G 8 Laying down the submain 75days H 9 Laying down the laterals 120 days I Establishment of air valves and pressure gauges, water 10 meters 25 days J 11 Establishing the flush line 40 days K

Material requirement 1 Submersible motors 2 3 4 5 6 7 8 9 PVC pipes- for parent line, main, submain and flush line LLDPE and HDPE laterals Ventury injectors Fertilizer tanks Water mertes Sprinklers and rain guns Air valves Pressure gauges

Ltd in 400 Ha within the span ra) and Jamnagar (Gujarat) Preceding Activity A A B, C C D, E F G H I I

1 Submersible motors 2 3 4 5 6 7 8 9 PVC pipes- for parent line, main, submain and flush line LLDPE and HDPE laterals Ventury injectors Fertilizer tanks Water mertes Sprinklers and rain guns Air valves Pressure gauges

Direct material

Direct Labour

1 Wages paid to workers for installation of the system 1 Cost of special patterns, design

Direct Expenses

Cost of hiring some special machinery or plant required 2 for a particular job
3 Fees paid to architects, surveyors and other consultants 4 Experimental cost = 1 2 3 + 1 2 3 4 5 + 1 2 3 4 5 6 7 8 = 1 2 + 1 2 Indirect material

Factory supplies Fumigation chemicals Consumable stores

Indirect Labour

Factory Overhead (At wrehouse)

supervision at wrehouses Inspection of mterials Security guards Clerks at warehouse Storkeepers

Indirect Expenses

Warehouse Rent Warehouse Insurance Property Tax Depreciation - Warehouse Repair & Maintenance - wraehouse Employee payroll taxes Overtime premium Cost of idle time Timekeepers Printing & stationery material Brooms & dusters
Indirect Labour

Administrative and office salaries Employer payroll taxes

Administration Overhead

Administration Overhead

+ 1 2 3 4 5 6 7 8 = 1 2 +

Indirect Expenses

Rent & deprn. Office property tax office auditing exps legal exps travel & entertainment Postage and telegraph Telephone exps Lighting expenses
Indirect material

invoice stationery Promotional material

Indirect Labour

Selling Overhead

1 Sales salaries and commission 2 Employer payroll taxes

+ Indirect Expenses

1 2 3 4

Advertising Rent Sales office Property tax on sales office freight outward

Mrginal costing for Pravah Irrigation Pvt ltd for installing irrigation unit in 10 acre Drip Sprinkler RainGun Rs. Rs. Rs. 300000 290000 250000 15000 12000 10000 2000 1500 1500 500 500 500 2000 2000 1200 6000 4000 3000 400000 380000 350000

Direct materials Direct Labours Factory over head Saling Overhead Sales

Fixed Variable Fixed Variable

Fixed factory overhead and fixed selling overhead were apportioned to all three products on equitable basis Marginal cost method Particular Sales Direct Material Direct Labour Variable factory overheads Variable sales overhead Total variable cost Contribution Fixed cost Profit Drip Sprinkler RainGun Total 400000 380000 350000 300000 290000 250000 15000 12000 10000 500 500 500 6000 4000 3000 321500 306500 263500 78500 73500 86500 238500 10200 228300

Pv ratio Drip in % Pv ratio Sprinkler in % PV ratio Raingun in %

19.625 19.34211 24.71429

on equitable basis