i need only income statement from abosrbtion costing methodthere is no need of other questions only give answer of 2.1 Question 2Answer the questions from the information provided.2.1 Use the information given below to prepare the Income Statement for March 2022 according to theabsorption costing method.INFORMATIONThe following information was extracted from the accounting records of Alpha Enterprises for the month ended 31March 2022:SalesSelling price per unitFinished products on 01 March 2022Products manufactured during the monthVariable manufacturing costs per unitVariable selling and administrative costs per unit soldFixed manufacturing costsFixed selling and administrative costs3 200 unitsR100400 units3 600 unitsR26R12R25 200R12 400 2.2Additional informationThe variable manufacturing cost per unit and total manufacturing cost per unit of the finished goods on 01 March2022 was R21.60 and R26.20 respectively.Use the information provided below to calculate the following manufacturing variances for March2022. Note: Each answer must state whether the variance is favourable or unfavourable.Labour rate variance2.2.12.2.2 Labour efficiency variance2.2.3 Variable overheads efficiency variance2.2.4 Variable overheads expenditure varianceINFORMATIONNevada Limited set a standard labour rate of R32 per hour and a standard variable overhead rate of R3.80 perlabour hour.Actual hours worked for March 2022 were 4 910 at a cost of R149 264. The actual variable overhead cost incurredwas R19 640. The standard allowance of labour hours for the output achieved was 5 000 hours.

Absorption Costing Method :— In this Method, manufacturing Cost are distributed according to…

Question 2 Answer the questions from the information provided. 2.1 Use the information given below to prepare the Income Statement for March 2022 according to the absorption costing method. INFORMATION The following information was extracted from the accounting records of Alpha Enterprises for the month ended 31 March 2022: Sales Selling price per unit Finished products on 01 March 2022 Products manufactured during the month Variable manufacturing costs per unit Variable selling and administrative costs per unit sold Fixed manufacturing costs Fixed selling and administrative costs 3200 units R100 400 units 3 600 units R26 R12 R25 200 R12 400

Question 2 Answer the questions from the information provided. 2.1 Use the information given below to prepare the Income Statement for March 2022 according to the absorption costing method. INFORMATION The following information was extracted from the accounting records of Alpha Enterprises for the month ended 31 March 2022: Sales Selling price per unit Finished products on 01 March 2022 Products manufactured during the month Variable manufacturing costs per unit Variable selling and administrative costs per unit sold Fixed manufacturing costs Fixed selling and administrative costs 3200 units R100 400 units 3 600 units R26 R12 R25 200 R12 400

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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Question

i need only income statement from abosrbtion costing method

there is no need of other questions only give answer of 2.1

Question 2
Answer the questions from the information provided.
2.1 Use the information given below to prepare the Income Statement for March 2022 according to the
absorption costing method.
INFORMATION
The following information was extracted from the accounting records of Alpha Enterprises for the month ended 31
March 2022:
Sales
Selling price per unit
Finished products on 01 March 2022
Products manufactured during the month
Variable manufacturing costs per unit
Variable selling and administrative costs per unit sold
Fixed manufacturing costs
Fixed selling and administrative costs
3 200 units
R100
400 units
3 600 units
R26
R12
R25 200
R12 400

2.2
Additional information
The variable manufacturing cost per unit and total manufacturing cost per unit of the finished goods on 01 March
2022 was R21.60 and R26.20 respectively.
Use the information provided below to calculate the following manufacturing variances for March
2022. Note: Each answer must state whether the variance is favourable or unfavourable.
Labour rate variance
2.2.1
2.2.2 Labour efficiency variance
2.2.3 Variable overheads efficiency variance
2.2.4 Variable overheads expenditure variance
INFORMATION
Nevada Limited set a standard labour rate of R32 per hour and a standard variable overhead rate of R3.80 per
labour hour.
Actual hours worked for March 2022 were 4 910 at a cost of R149 264. The actual variable overhead cost incurred
was R19 640. The standard allowance of labour hours for the output achieved was 5 000 hours.

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