Calculation of actual quantities workingbackwards from variances. The following profit reconciliationstatement summarizes the performance of one of SEWSproducts for March.(£)Budgeted profit4250Sales volume variance850AStandard profit on actual salesSelling price variance34004000A(600)Adverse FavourableCost varlances:(£)(£)Direct material price1000Direct material usageDirect labour rate150200150Direct labour efficiencyVariable overhead expenditureVariable overhead efficiencyFixed overhead efficiency600752500Fixed averhead volume11751503650Actual profit2475F1875The budget for the same period contained the following data:Sales volume1500 unitsSales revenue£20000Production volume1500 unitsDirect materials purchased750kg750kgDirect materials used£4 500Direct material costDirect labour hours1125Direct labour cost£4500£2250£4 500Variable overhead costFixed overhead costAdditional information:• stocks of raw materials and finished goods are valued atstandard cost;during the month the actual number of units producedwas 1550:• the actual sales revenue was £12000:• the direct materials purchased were 1000kg.Required:(a) Calculate(1) the actual sales volume;(ii) the actual quantity of materials used;

Name: Calculation of actual quantities workingbackwards from variances. The
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Description: Calculation of actual quantities workingbackwards from variances. The following profit reconciliationstatement summarizes the performance of one of SEWSproducts for March.(£)Budgeted profit4250Sales volume variance850AStandard profit on actual sales

Variance refers to those deviation which is used to determine the difference between the actual…

Answered: Required: (a) Calculate (1) the actual…

Business

Accounting

Required: (a) Calculate (1) the actual sales volume; (ii) the actual quantity of materials used;

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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