Question 3 Owen plc manufactures one product, and the entire product is sold as soon as it is produced. The company operates a standard costing system and analysis of variances is made every month. The standard cost card for a product is as follows. Materials (4 Kg at £4.50 per Kg) Labour (5 Hours at £5 per hr) Variable overheads (5 hrs at £2 per hr) Fixed overheads (5 hrs at £3 per hr) Budgeted selling price is £75 per unit Budgeted production Budgeted sales There is no opening inventory The actual results are as follows: Sales: 8,400 units for £613,200 Production: 8,900 units Actual costs: Materials (35,464 kg): £163,455 Labour: £224,515 Variable overheads: £ 87,348 Fixed overheads: f 134 074 £ per Unit 18 25 10 15 £68 8.700 units 8,000 units

Question 3 Owen plc manufactures one product, and the entire product is sold as soon as it is produced. The company operates a standard costing system and analysis of variances is made every month. The standard cost card for a product is as follows. Materials (4 Kg at £4.50 per Kg) Labour (5 Hours at £5 per hr) Variable overheads (5 hrs at £2 per hr) Fixed overheads (5 hrs at £3 per hr) Budgeted selling price is £75 per unit Budgeted production Budgeted sales There is no opening inventory The actual results are as follows: Sales: 8,400 units for £613,200 Production: 8,900 units Actual costs: Materials (35,464 kg): £163,455 Labour: £224,515 Variable overheads: £ 87,348 Fixed overheads: f 134 074 £ per Unit 18 25 10 15 £68 8.700 units 8,000 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following direct materials and direct labor data pertain to the operations of Sandhill Company for the month of August. Costs Actual labor rate Actual materials price Standard labor rate Standard materials price $13 $120 $12.50 $124 Quantities per hour per ton per hour per ton Actual hours incurred and used Actual quantity of materials purchased and used Standard hours used Standard quantity of materials used 4,900 hours 2,000 tons 4,960 hours 1,990 tons
Based on the attached image, answer the following question: 1. What is the direct-material price variance? 2. What is the direct-material quantity variance? 3. What is the labor rate variance?
Total variance in variance analysis compares ● Flexible budget and actual outcome Static budget and flexible budget Flexible budget and static outcome Static budget and actual outcome
b. Calculate the profit variance c. Calculate the total revenue variance. d) Calculate the revenue volume variance. e) Calculate the revenue price variance. f) Calculate the total cost variance.
4. Compute the Material Price variance 5. Compute the Material Quantity variance 6. Compute the Total Labor variance 7. Compute the Labor Price variance 8. Compute the Labor Quantity variance 9. Compute the Total Manufacturing Overhead variance 10. Which variance(s) would be the responsibility of the Production Manager? 11. Which variance(s) would be the responsibility of the Purchasing Manager? Show all calculations for each item step-by-step
in preparing variance analysis for both variable overhead and fixed overhead costs, both include spending variances
The fixed overhead spending variance can be calculated by taking: 1. The difference between the original budget and the actual results. 2. The difference between the flexed budget and the actual results. Which of the above statements are correct? A. Both 1 and 2 B. Neither 1 nor 2 C. 2 only O D. 1 only ...
The variance that highlights the difference between actual sales volume and the master budget sales volume is the sales activity variance. O flexible budget variance. O master budget variance. O MOH volume variance.
Which of the following underlying assumptions form(s) the basis for gross profit variance analysis? A. In multi-product organization, the sales mix remains discretionary. B. Sales and costs behave in ainear manner C. All of the choices are assumptions that underlie gross profit variance analysis D. Costs can be categorized as variable
a. Determine the sales and variable cost volume variances.