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

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Similar questions

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Please dont give handwritten answers thanku
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