Answer the questions from the information provided. 2.1 Use the information given below to prepare the Income Statement for March 2022 according to the absorption costing method. INFORMATION The following information was extracted from the accounting records of Alpha Enterprises for the month ended 31 March 2022: Sales 3200 units Selling price per unit R100 Finished products on 01 March 2022 400 units products manufactured during the month 3600 units variable manufacturing costs per unit R26 variable selling and administatrive costs per units sold R12 fixed manufacturing costs R25 200 fixed selling and administractive costs R12 400 Additional information The variable manufacturing cost per unit and total manufacturing cost per unit of the finished goods on 01 March 2022 was R21.60 and R26.20 respectively.
Answer the questions from the information provided.
2.1 Use the information given below to prepare the Income Statement for March 2022 according to the
absorption costing method.
INFORMATION
The following information was extracted from the accounting records of Alpha Enterprises for the month ended 31
March 2022:
| Sales | 3200 units |
| Selling price per unit | R100 |
| Finished products on 01 March 2022 | 400 units |
| products manufactured during the month | 3600 units |
| variable |
R26 |
| variable selling and administatrive costs per units sold | R12 |
| fixed manufacturing costs | R25 200 |
| fixed selling and administractive costs | R12 400 |
Additional information
The variable manufacturing cost per unit and total manufacturing cost per unit of the finished goods on 01 March
2022 was R21.60 and R26.20 respectively.
2.2 Use the information provided below to calculate the following manufacturing variances for March
2022. Note: Each answer must state whether the variance is favourable or unfavourable.
2.2.1 Labour rate variance
2.2.2 Labour efficiency variance
2.2.3 Variable overheads efficiency variance
Variable overheads expenditure variance
INFORMATION
Nevada Limited set a standard labour rate of R32 per hour and a standard variable overhead rate of R3.80 per
labour hour.
Actual hours worked for March 2022 were 4 910 at a cost of R149 264. The actual variable overhead cost incurred
was R19 640. The standard allowance of labour hours for the output achieved was 5 000 hours.
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2.2 Use the information provided below to calculate the following manufacturing variances for March
2022. Note: Each answer must state whether the variance is favourable or unfavourable
2.2.1 Labour rate variance
2.2.2 Labour efficiency variance
2.2.3 Variable
Variable overheads expenditure variance
INFORMATION
Nevada Limited set a standard labour rate of R32 per hour and a standard variable overhead rate of R3.80 per
labour hour.
Actual hours worked for March 2022 were 4 910 at a cost of R149 264. The actual variable overhead cost incurred
was R19 640. The standard allowance of labour hours for the output achieved was 5 000 hours.
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