BesteLippe (Pty) Ltd produces two types of lip balm, namely Healing and Organic and uses anabsorption costing system. BesteLippe budgeted to produce and sell 1 800 000 units of Healingand 600 000 units of Organic for the financial year starting on 1 May 2024. The other budgetedinformation is as follows:DetailsSelling priceDirect raw materialDirect LabourVariable overhead costsSelling and distribution costs(70% fixed and 30% variable)HealingOrganicR per unitR per unit40,0045,0014,2520,005,008,004,006,002,504,00Fixed manufacturing overheads and General administrative costs are R5 000 000 and R11 000 000respectively for the financial year starting on 1 May 2024.The total budgeted fixed cost to be used in the break-even unit calculation for the financial yearstarting on 1 May 2024 is:Select one:a.R16 000 000b.R20 830 000C.R18 070 000d. None of the optionse.R22 900 000

The objective of the question is to calculate the total budgeted fixed cost to be used in the…

Answered: BesteLippe (Pty) Ltd produces two types…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Taylor Manufacturing Plc produces three types of leather chairs. Budgeted costs and selling prices for the next financial year are as follows: Product                                                        Grand Basic Supreme Selling price/unit                       £ 312 £ 153.60 £ 393.60 Variable costs/unit Direct wages Machinists (£17.60/hr)                                             52.80 17.60 70.40 Finishers (£14.40/hr)                                                        14.40       7.20    28.80 Direct materials                                                             11.20                        4.80      12.80 Variable overheads                                                         11.20       5.60                11.20                                                                               89.60    35.20 123.20…
Julum Limited manufactures a single product and operates a standard costing system. Budgeted Data (per unit) : Labour 5 hours @ £15.00 Per Hour Budgeted production for August was expected to reach   10000 Units Actual production 11000 Units The actual costs incurred were as follows : Actual Data : Labour 60000 hours @ £14.50 Per Hour a). What is Labour efficiency variance? Choose one from the following: A. £30,000.00 Favourable B. £75,000.00 Unfavourable C. £45,000.00 Favourable D. £45,000.00 Unfavourable
Matolo ltd manufactures two types of products BELL and CELL.The following budgeted information is available                                                                         PRODUCT                                                                         BELL           CELL Budgeted Production and Sales in Units           550               550 Labour hours per unit                                       100               100 Variable cost per unit                                        K15,000          K16,000 Total budgeted labour hours                             110,000          240,000 The company has general fixed overheads amounting to K13,010,000 which is absorbed using labour hour rate. The analysis of the K13,010,000 general fixed overheads revealed the following: Overhead item                                       K’000 Setup costs                                            6,000 Inspection                                              3,510 Labour costs…
Brindle Arts uses Variable Costing for internal purposes, but uses Absorption Costing for their financial reports. The following information is for Quarter 4, 2021 and Quarter 1, 2022. Calculate unit product costs for Quarters 4 and 1 for Variable and Absorption Costing. Prepare an income statement for each method, then show why there is a difference between the two. Selling price per unit $ 150 Quarter 4 Quarter 1 Variable costs per unit Units in beginning inventory - 1,750 Direct materials $ 45.00 Production (in units) 15,000 10,750 Direct labor $ 20.00 Sales (in units) 13,250 12,500 Variable overhead $ 15.00 Ending inventory 1,750 - Variable S&A $ 10.00 Fixed Costs in total per quarter Fixed manufacturing overhead…
Ocean Sails manufactures sailing boats in two models: the Wave Rider and the Stress Killer. The company currently uses a variable costing system for internal reporting purposes. Its budgeted profit statement for the year ended 31 March 2021 is provided in the following table: Wave Rider (£) Stress Killer (£) Total (£) Sales revenues 52,500,000 105,000,000 157,500,000 Variable cost of goods sold 39,343,750 79,800,000 119,143,750 Variable marketing & admin costs 6,300,000 12,600,000 18,900,000 Contribution margin 6,856,250 12,600,000 19,456,250 Fixed manufacturing overhead 3,500,000 Fixed marketing & admin costs 16,000,000 Profit (Loss) (43,750) The following information from the budget is also available: Wave Rider Stress Killer (Units) (Units) Opening inventory 5 8 Units produced 20 25 Closing inventory 15 5 Units…
Abel Company manufactures a single product. Budgeted data are as follows: Production /sales 12,000 units Variable costs per unit P 7.20 Fixed costs P 9,600 Current assets 60% of sales Fixed assets P 48,000 The company wants to earn 20% return on investment (Assets), What should be the selling price per unit?a. 8.00b. 10.00c. 12.00d. 12.50
Crane, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats. Activity Cost Pools Sizing and cutting Stitching and trimming Wrapping and packing Sizing and cutting Stitching and trimming Estimated Overhead Wrapping and packing $4,108,500 1,439,100 $ Compute the activity-based overhead rates using the following budgeted data for each of the activity cost pools. (Round answers to 2 decimal places, e.g. 12.25.) $ LA 325,500 $ Estimated Use of Cost Drivers per Activity 166,000 machine hours 78,000 labor hours 35,000 finished units Activity-based overhead rates per machine hour per labor hour per finished unit
Mi.2
Julum Limited manufactures a single product and operates a standard costing system. Budgeted Data (per unit) : Labour 5 hours @ £15.00 Per Hour Budgeted production for August was expected to reach 10000 Units Actual production 11000 Units The actual costs incurred were as follows : Actual Data : Labour 60000 hours @ £14.50 Per Hour a. What is Labour Rate Variance? Choose one from the following: A. £30,000.00 Favourable B. £75,000.00 Unfavourable C. £45,000.00 Favourable D. £45,000.00 Unfavourable
Buckingham Star Company Ltd has a single production process for which the following have been estimated: £ Material receipts and inspection cost 31,200 Power cost 39,000 Material handling cost 27,300 Three products, Alpha, Beta, and Gamma are produced by workers, who perform a number of operations on material blanks using hand-held electrically powered drills. The workers have a wage rate of £4 per hour. The following budgeted information has been obtained for the period ending 31 December 2018 Alpha Beta Gamma Production quantity (units) 4000 3000 1600 Batches of material Data per product unit 20 10 32 Direct material (square metres) 8 12 6 Direct material (£) 10 6 12 Direct labour (minutes) 48 40 120 Number of power drill operations 12 6 4 Overhead costs for material receipt and inspection, process power…
Perez Manufacturing Company established the following standard price and cost data. Sales price Variable manufacturing cost $ 8.98 per unit $ 3.40 per unit Fixed manufacturing cost Fixed selling and administrative cost $ 2,000 total $ 600 total Perez planned to produce and sell 2,300 units. Actual production and sales amounted to 2,600 units. Required a. Prepare the pro forma income statement in contribution format that would appear in a master budget. b. Prepare the proforma Income statement in contribution format that would appear in a flexible budget. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the pro forma income statement in contribution format that would appear in a master budget. PEREZ MANUFACTURING COMPANY Pro Forma Income Statement Master Budget 2,300 Units
Zizi plc uses a standard absorption costing system and produces and sells product 8W. The standard cost card is below: Product 8W (€ per unit) Direct material (5 per kg) 15 Direct labour (6 per hour) 12 Fixed manufacturing overhead 10 Total production cost 37 Standard profit 13 Standard selling price 50 * Absorption rate based on standard labour hours Budgeted and actual production and sales units for december 2020 were as follows: Budget Actual Production 1,100 900 Sales 1,000 800 Actual data for December 2020 were as follows € Direct material purchases 1,200 kgs costing 12,000 Direct materials used 1,100 kgs Direct labour hours 500 hours costing 6,000 Fixed manufacturing overhead 5,000 Sales revenue 30,000 An analysis of the Direct labour hours shows that the 500 hours that were paid for 50 were idle time due to a machinery breakdown. There were no inventories of Direct materials or finished products (planned or actual) at the…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS