(a) Prepare a profit statement for each of the two months of November and December 2007using:(i)(ii)(b) Prepare a reconciliation of the differences in net profit reported under the two systems foreach of the two months.QUESTION 5Total absorption costingMarginal costingJamlee Investment Ltd is planning to make 120,000 units per period of a new product. The followingstandards have been set:Direct Material ADirect Material BDirect Labour:ProductionPer Unit1.2 kgs at K11 per kg4.7 kg at K6 per KgOperation 1Operation 2Operation 3Overheads are absorbed at the rate of k30 per labour hour. All direct operatives are paid at the rateof K8 per hour.Actual results for the period were:42 minutes37 minutes11 minutes126,000 unitsDirect LabourMaterial AMaterial BRequired(a) Calculate the standard cost for one unit(b) Calculate the labour rate variance and labour efficiency variances.(c) Calculate the material price and usage variances.(d) Explain the terms "attainable standard" and "ideal standard" and discuss which is mostcost k1.7m for 215,000 clock hoursCost K1.65m for 150,000 kgscost K3.6m for 590,000 kgsappropriate when setting operational performance standards.(e) List two reasons why an idle time variance might occur.||

Name: (a) Prepare a profit statement for each of the two months of November
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Description: (a) Prepare a profit statement for each of the two months of November and December 2007using:(i)(ii)(b) Prepare a reconciliation of the differences in net profit reported under the two systems foreach of the two months.QUESTION 5Total absorption cos

The investigation of the discrepancy between the anticipated and actual figures is referred to as…

Business

Accounting

Operation 1 42 minutes Operation 2 37 minutes Operation 3 11 minutes Overheads are absorbed at the rate of k30 per labour hour. All direct operatives are paid at the rat of K8 per hour. Actual results for the period were: Production Direct Labour 126,000 units cost k1.7m for 215.000 clock hours

Operation 1 42 minutes Operation 2 37 minutes Operation 3 11 minutes Overheads are absorbed at the rate of k30 per labour hour. All direct operatives are paid at the rat of K8 per hour. Actual results for the period were: Production Direct Labour 126,000 units cost k1.7m for 215.000 clock hours

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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