New Motion Ltd. manufactures a single product which has selling price is £ 120 perunit. The monthly budget units are 1000 units. £ Direct material 20 units @ £3 per unit60 Direct labour 3 hours @ £5 per hour 15 Variable overheads 5 hours @ £2 per hour10 Fixed overheads 5 hours @ £1 per hour 590 Actual figures for the month ofSeptember are as follows: Production 1,200 units Direct material 23,000 units @ £ 4per unit Direct Wages 3,500 hours @ £ 5.2 Variable overheads £ 11,000 Fixedoverheads £ 6,000 Required: Calculate the material, labour and overhead variancesfor the month of September and prepare summary of variances report withexplanation referred to responsibility persons for the variances.

Name: New Motion Ltd. manufactures a single product which has selling price
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Description: New Motion Ltd. manufactures a single product which has selling price is £ 120 perunit. The monthly budget units are 1000 units. £ Direct material 20 units @ £3 per unit60 Direct labour 3 hours @ £5 per hour 15 Variable overheads 5 hours @ £2 per ho

ParticularsVariance AmountResponsibiltyDirect Material Rate Variance23,000 (Unfavourable)Purchase…

Business

Accounting

overheads £ 6,000 Required: Calculate the material, labour and overhead variances for the month of September and prepare summary of variances report with explanation referred to responsibility persons for the variances.

overheads £ 6,000 Required: Calculate the material, labour and overhead variances for the month of September and prepare summary of variances report with explanation referred to responsibility persons for the variances.

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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