Makindu fries Enterprises Ltd manufactures food products. The details of the manufacturing cost of one of its products branded ‘TLM’ is provided below; Standard cost per unit: Materials: 6 kilograms at Sh.480 per kilogram Labor: 4.8 hours at Sh.800 per hour Additional information: The actual cost for the month of April 2021 was as follows; Materials: 59,000 kilograms at Sh.500 per kilogram Labor: 47,500 hours at Sh.900 per hour The actual production amounted to 10,000 units The variable production overheads are absorbed at 50% of the direct labor cost Required: Appropriate Material variances The appropriate labor variances A firm makes a single product with a marginal cost of Sh.15. Up to 50,000 units can be sold at Sh.30 per unit but additional sales can only be made by reducing the selling price to Sh.20 per unit. Fixed costs are Sh.250,000 per period and there is a planned profit of Sh.600,000 per period. Required: How many units must be made and sold? DO NOT GIVE SOLUTION IN IMAGE FORMAT
Makindu fries Enterprises Ltd manufactures food products. The details of the
Materials: 6 kilograms at Sh.480 per kilogram
Labor: 4.8 hours at Sh.800 per hour
Additional information:
The actual cost for the month of April 2021 was as follows;
Materials: 59,000 kilograms at Sh.500 per kilogram
Labor: 47,500 hours at Sh.900 per hour
The actual production amounted to 10,000 units
The variable production overheads are absorbed at 50% of the direct labor cost
Required:
Appropriate Material variances
The appropriate labor variances
A firm makes a single product with a marginal cost of Sh.15. Up to 50,000 units can be sold at Sh.30 per unit but additional sales can only be made by reducing the selling price to Sh.20 per unit. Fixed costs are Sh.250,000 per period and there is a planned profit of Sh.600,000 per period.
Required: How many units must be made and sold?
DO NOT GIVE SOLUTION IN IMAGE FORMAT
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