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 the Labour Cost 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
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Julum Limited manufactures a single product and operates a
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Budgeted Data (per unit) : |
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Labour |
5 |
hours |
@ |
£15.00 |
Per Hour |
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Budgeted production for August was expected to reach |
10000 |
Units |
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|
Actual production |
11000 |
Units |
|||
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The actual costs incurred were as follows : |
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Actual Data : |
|||||
|
Labour |
60000 |
hours |
@ |
£14.50 |
Per Hour |
a). What is the Labour Cost Variance?
Choose one from the following:
| A. |
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| B. |
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| C. |
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| D. |
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