a Manufacturers Co. has the following details for the variable overheads on its product MM7 for the year to 31st March 2022. Each MM7 was expected to take three labour hours and variable overheads were expected to be £4.25 per labour hour. The company expected to make and sell 200,000 units of MM7. Budgeted fixed overheads were £25,000. In fact, in the year ended 31s March 2022 the company made 180,000 MM7s using 630,000 labour hours. The actual cost of variable overheads was £2,800,000 and fixed overheads £23,000. Required: Calculate the following variances for Mercia Manufacturers Co. for the year ended 31st March 2022: i. variable overhead expenditure variance ii. variable overhead efficiency variance ii. fixed overhead expenditure varianc

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Mercia Manufacturers Co. has the following details for the variable overheads on its product MM7 for the year to 31st March 2022. Each MM7 was expected to take three labour hours and variable overheads were expected to be £4.25 per labour hour. The company expected to make and sell 200,000 units of MM7. Budgeted fixed overheads were £25,000. In fact, in the year ended 31s March 2022 the company made 180,000 MM7s using 630,000 labour hours. The actual cost of variable overheads was £2,800,000 and fixed overheads £23,000. Required: Calculate the following variances for Mercia Manufacturers Co. for the year ended 31st March 2022: i. variable overhead expenditure variance ii. variable overhead efficiency variance ii. fixed overhead expenditure variancMercia Manufacturers Co. has the following details for the variable overheads on its product MM7 for the year to 31st March 2022. Each MM7 was expected to take three labour hours and variable overheads were expected to be £4.25 per labour hour. The company expected to make and sell 200,000 units of MM7. Budgeted fixed overheads were £25,000. In fact, in the year ended 31s March 2022 the company made 180,000 MM7s using 630,000 labour hours. The actual cost of variable overheads was £2,800,000 and fixed overheads £23,000. Required: Calculate the following variances for Mercia Manufacturers Co. for the year ended 31st March 2022: i. variable overhead expenditure variance ii. variable overhead efficiency variance ii. fixed overhead expenditure variance
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