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Jones plc manufactures one product, and the entire product is sold as soon as it is produced. There are no opening or closing inventories and work in progress is negligible. The company operates a standard costing system and analysis of variances is made every month. The standard cost card for a product is as follows. 0.5 kilos at£4 per kilo 2 hours at £8.00 per hour 2 hours at£0.30 per hour Direct Materials Direct Wages Variable Overheads Standard Variable Cost Standard Contribution Standard Selling Price Budgeted output for the month of June 2015 was 5,100 units. Actual results for June 2015 were as follows: £ 2.00 16.00 .60 18.60 13.40 32.00 Production of 4,850 units was sold for £150,350. Materials consumed in production amounted to 2,300 kgs at a total cost of £9,800. Labour hours paid for amounted to 8,500 hours at a cost of £67,800. Actual operating hours amounted to 8,000 hours. Variable Overheads amounted to £2,600.

Jones plc manufactures one product, and the entire product is sold as soon as it is produced. There are no opening or closing inventories and work in progress is negligible. The company operates a standard costing system and analysis of variances is made every month. The standard cost card for a product is as follows. 0.5 kilos at£4 per kilo 2 hours at £8.00 per hour 2 hours at£0.30 per hour Direct Materials Direct Wages Variable Overheads Standard Variable Cost Standard Contribution Standard Selling Price Budgeted output for the month of June 2015 was 5,100 units. Actual results for June 2015 were as follows: £ 2.00 16.00 .60 18.60 13.40 32.00 Production of 4,850 units was sold for £150,350. Materials consumed in production amounted to 2,300 kgs at a total cost of £9,800. Labour hours paid for amounted to 8,500 hours at a cost of £67,800. Actual operating hours amounted to 8,000 hours. Variable Overheads amounted to £2,600.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculate all variances and prepare an operating statement for the month ended
June 2015 

Question 3 Jones plc manufactures one product, and the entire product is sold as soon as it is produced. There are no opening or closing inventories and work in progress is negligible. The company operates a standard costing system and analysis of variances is made every month. The standard cost card for a product is as follows. 0.5 kilos at£4 per kilo 2 hours at £8.00 per hour Variable Overheads 2 hours at£0.30 per hour Direct Materials Direct Wages Standard Variable Cost Standard Contribution Standard Selling Price Budgeted output for the month of June 2015 was 5,100 units. Actual results for June 2015 were as follows: £ 2.00 16.00 .60 18.60 13.40 32.00 Production of 4,850 units was sold for £150,350. Materials consumed in production amounted to 2,300 kgs at a total cost of £9,800. Labour hours paid for amounted to 8,500 hours at a cost of £67,800. Actual operating hours amounted to 8,000 hours. Variable Overheads amounted to £2,600.
Transcribed Image Text:Question 3 Jones plc manufactures one product, and the entire product is sold as soon as it is produced. There are no opening or closing inventories and work in progress is negligible. The company operates a standard costing system and analysis of variances is made every month. The standard cost card for a product is as follows. 0.5 kilos at£4 per kilo 2 hours at £8.00 per hour Variable Overheads 2 hours at£0.30 per hour Direct Materials Direct Wages Standard Variable Cost Standard Contribution Standard Selling Price Budgeted output for the month of June 2015 was 5,100 units. Actual results for June 2015 were as follows: £ 2.00 16.00 .60 18.60 13.40 32.00 Production of 4,850 units was sold for £150,350. Materials consumed in production amounted to 2,300 kgs at a total cost of £9,800. Labour hours paid for amounted to 8,500 hours at a cost of £67,800. Actual operating hours amounted to 8,000 hours. Variable Overheads amounted to £2,600.
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