Case Study Jumping Flash Pty Ltd is an innovative organisation that produces environmentally friendly pumps for water management. The design of this pump is unique and represents an efficient and environmentally friendly system that may be used on any mine site. These pumps combine positive features of economy, efficiency and innovation. The company has just completed its second year of operations. You are now employed as the management accountant for Jumping Flash Pty Ltd and you have been requested to produce a performance report (using Excel) and the calculate all the relevant variances. Information The following details are available: 1. SALES AND SALES REVENUE Jumping Flash Pty Ltd Units and revenue details for the period 01 July - 30 September 2018 Sales (units) Sales revenue Actual Master (Fixed) Budget 16,500 15,000 $ $ 5,362,500 5,250,000 Note: Both these production levels are within the relevant range. 2. STANDARD COST DETAILS Jumping Flash Pty Ltd Standard cost schedule - Manufacturing costs Per unit Usage Direct material 7 kilos Per unit Rate $5 per kilo Per unit $ 35.00 Direct labour 8 hours $10 per hour 80.00 Variable manufacturing overhead 8 hours $2 per hour 16.00 Fixed manufacturing overhead 8 hours $4 per hour 32.00
Case Study Jumping Flash Pty Ltd is an innovative organisation that produces environmentally friendly pumps for water management. The design of this pump is unique and represents an efficient and environmentally friendly system that may be used on any mine site. These pumps combine positive features of economy, efficiency and innovation. The company has just completed its second year of operations. You are now employed as the management accountant for Jumping Flash Pty Ltd and you have been requested to produce a performance report (using Excel) and the calculate all the relevant variances. Information The following details are available: 1. SALES AND SALES REVENUE Jumping Flash Pty Ltd Units and revenue details for the period 01 July - 30 September 2018 Sales (units) Sales revenue Actual Master (Fixed) Budget 16,500 15,000 $ $ 5,362,500 5,250,000 Note: Both these production levels are within the relevant range. 2. STANDARD COST DETAILS Jumping Flash Pty Ltd Standard cost schedule - Manufacturing costs Per unit Usage Direct material 7 kilos Per unit Rate $5 per kilo Per unit $ 35.00 Direct labour 8 hours $10 per hour 80.00 Variable manufacturing overhead 8 hours $2 per hour 16.00 Fixed manufacturing overhead 8 hours $4 per hour 32.00
Chapter1: Financial Statements And Business Decisions
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