MetaverseTech LTD start-up sold 8672 Virtual Reality devices in 2022 at £155 per device. The production cost of each device was £102, on average. The company owner took a salary of £55,000, while the company employees were paid in total £283,000. The company paid £24,000 in warehouse rent, and £38,000 in office expenses. The company has a £100,000 note at the bank, with 8% interest rate. The company had income tax rate of 28%. Prepare a consolidated income statement of MetaverseTech LTD.
MetaverseTech LTD start-up sold 8672 Virtual Reality devices in 2022 at £155 per device. The production cost of each device was £102, on average. The company owner took a salary of £55,000, while the company employees were paid in total £283,000. The company paid £24,000 in warehouse rent, and £38,000 in office expenses. The company has a £100,000 note at the bank, with 8% interest rate. The company had income tax rate of 28%. Prepare a consolidated income statement of MetaverseTech LTD.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Metaverse Tech LTD start-up sold 8672 Virtual Reality devices in 2022 at £155
per device. The production cost of each device was £102, on average. The
company owner took a salary of £55,000, while the company employees were
paid in total £283,000. The company paid £24,000 in warehouse rent, and
£38,000 in office expenses. The company has a £100,000 note at the bank,
with 8% interest rate. The company had income tax rate of 28%.
Prepare a consolidated income statement of MetaverseTech LTD.
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