Management at Marvin Limited has provided the following budgeted and actual annual figures forone of its products based on variable costing:Output (production and sales)Sales revenueDirect materialsDirect labourVariable overheadsFixed overheadsRequired:a)b)c)Budget18,000 units£Calculate the following:576,000(27,000 metres) 132,300(28,800 hours) 273,600(28,800 hours) 115,2008,000Construct a flexed budget for the actual units made and sold.i.ii.iii.iv.Use your answer to a) above to calculate the sales volume contribution margin variance andinterpret this result.Actual20,200 units£828,200(27,270 metres) 136,350(40,400 hours) 391,880(40,400 hours) 193,92012,150Sales price variance;Direct materials price and usage variances;Direct labour wage rate and efficiency variances; andFixed overhead expenditure variance.d) Briefly explain how standard costing and variance analysis support budgetary control withinan organisation.

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Management at Marvin Limited has provided the following budgeted and actual annual figures for one of its products based on variable costing: Output (production and sales) Sales revenue Direct materials Direct labour Variable overheads Fixed overheads Required: a) c) Budget 18,000 units £ Calculate the following: 576,000 (27,000 metres) 132,300 (28,800 hours) 273,600 (28,800 hours) 115,200 8,000 Construct a flexed budget for the actual units made and sold. i. ii. iii. iv. b) Use your answer to a) above to calculate the sales volume contribution margin variance and interpret this result. Actual 20,200 units £ 828,200 (27,270 metres) 136,350 (40,400 hours) 391,880 (40,400 hours) 193,920 12,150 Sales price variance; Direct materials price and usage variances; Direct labour wage rate and efficiency variances; and Fixed overhead expenditure variance.

Management at Marvin Limited has provided the following budgeted and actual annual figures for one of its products based on variable costing: Output (production and sales) Sales revenue Direct materials Direct labour Variable overheads Fixed overheads Required: a) c) Budget 18,000 units £ Calculate the following: 576,000 (27,000 metres) 132,300 (28,800 hours) 273,600 (28,800 hours) 115,200 8,000 Construct a flexed budget for the actual units made and sold. i. ii. iii. iv. b) Use your answer to a) above to calculate the sales volume contribution margin variance and interpret this result. Actual 20,200 units £ 828,200 (27,270 metres) 136,350 (40,400 hours) 391,880 (40,400 hours) 193,920 12,150 Sales price variance; Direct materials price and usage variances; Direct labour wage rate and efficiency variances; and Fixed overhead expenditure variance.

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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