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Salah Global Products (SGP) is a manufacturer of sporting trophies and has factories across the world making original and replica trophies for each geographic region that it serves. Following the success of Liverpool Football Club winning the Premiership title in 2020, SGP have created a replica Premier League trophy, which allows fans to create a personal message on the front of the trophy, either for themselves or for others. The SGP marketing team has assigned the product name "Living the Dream". Unfortunately, the product launch was delayed due to issues in securing the required licences from both Liverpool FC and the Premier League. The product eventually launched on the 1st November 2020. You are Gini Dalglish and have recently joined SGP as a Management Accountant in their UK business, and your line manager is the UK Finance Director, Susan Fenway. Susan would like to review the product's performance for the first month to understand whether any changes are required in preparation for the Christmas gift season, and she has asked you to perform this analysis and report back. Susan has provided you with the following standard costs for one unit of the product. Direct labour (15 minutes) Direct materials (2 grams) Fixed overheads (based on the budgeted monthly output of 20,000 units) Selling price Profit Sales revenue Direct labour (4,000 hours) Direct materials (32,000 grams) Fixed overheads Profit During the month of November, you have found that only 15,000 units were made and sold and the financial results were as follows: £ £ 2.30 1.50 3.30 7.10 153,900 (35,040) (23,360) (67,350) 28,150 10.50 3.40

Salah Global Products (SGP) is a manufacturer of sporting trophies and has factories across the world making original and replica trophies for each geographic region that it serves. Following the success of Liverpool Football Club winning the Premiership title in 2020, SGP have created a replica Premier League trophy, which allows fans to create a personal message on the front of the trophy, either for themselves or for others. The SGP marketing team has assigned the product name "Living the Dream". Unfortunately, the product launch was delayed due to issues in securing the required licences from both Liverpool FC and the Premier League. The product eventually launched on the 1st November 2020. You are Gini Dalglish and have recently joined SGP as a Management Accountant in their UK business, and your line manager is the UK Finance Director, Susan Fenway. Susan would like to review the product's performance for the first month to understand whether any changes are required in preparation for the Christmas gift season, and she has asked you to perform this analysis and report back. Susan has provided you with the following standard costs for one unit of the product. Direct labour (15 minutes) Direct materials (2 grams) Fixed overheads (based on the budgeted monthly output of 20,000 units) Selling price Profit Sales revenue Direct labour (4,000 hours) Direct materials (32,000 grams) Fixed overheads Profit During the month of November, you have found that only 15,000 units were made and sold and the financial results were as follows: £ £ 2.30 1.50 3.30 7.10 153,900 (35,040) (23,360) (67,350) 28,150 10.50 3.40

FINANCIAL ACCOUNTING
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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Calculate the following variances using flexed budgets and the actual performance for November. i. Sales volume i. Sales price ili. Direct labour efficiency iv. Direct labour rate v. Direct material usage vi. Direct material rate vii. Fixed overheads
Salah Global Products (SGP) is a manufacturer of sporting trophies and has factories across the world making original and replica trophies for each geographic region that it serves. Following the success of Liverpool Football Club winning the Premiership title in 2020, SGP have created a replica Premier League trophy, which allows fans to create a personal message on the front of the trophy, either for themselves or for others. The SGP marketing team has assigned the product name "Living the Dream". Unfortunately, the product launch was delayed due to issues in securing the required licences from both Liverpool FC and the Premier League. The product eventually launched on the 1st November 2020. You are Gini Dalglish and have recently joined SGP as a Management Accountant in their UK business, and your line manager is the UK Finance Director, Susan Fenway. Susan would like to review the product's performance for the first month to understand whether any changes are required in preparation for the Christmas gift season, and she has asked you to perform this analysis and report back. Susan has provided you with the following standard costs for one unit of the product. Direct labour (15 minutes) Direct materials (2 grams) Fixed overheads (based on the budgeted monthly output of 20,000 units) Selling price Profit Sales revenue Direct labour (4,000 hours) Direct materials (32,000 grams) Fixed overheads Profit During the month of November, you have found that only 15,000 units were made and sold and the financial results were as follows: £ 2.30 1.50 3.30 7.10 10.50 3.40 £ 153,900 (35,040) (23,360) (67,350) 28,150
Transcribed Image Text:Salah Global Products (SGP) is a manufacturer of sporting trophies and has factories across the world making original and replica trophies for each geographic region that it serves. Following the success of Liverpool Football Club winning the Premiership title in 2020, SGP have created a replica Premier League trophy, which allows fans to create a personal message on the front of the trophy, either for themselves or for others. The SGP marketing team has assigned the product name "Living the Dream". Unfortunately, the product launch was delayed due to issues in securing the required licences from both Liverpool FC and the Premier League. The product eventually launched on the 1st November 2020. You are Gini Dalglish and have recently joined SGP as a Management Accountant in their UK business, and your line manager is the UK Finance Director, Susan Fenway. Susan would like to review the product's performance for the first month to understand whether any changes are required in preparation for the Christmas gift season, and she has asked you to perform this analysis and report back. Susan has provided you with the following standard costs for one unit of the product. Direct labour (15 minutes) Direct materials (2 grams) Fixed overheads (based on the budgeted monthly output of 20,000 units) Selling price Profit Sales revenue Direct labour (4,000 hours) Direct materials (32,000 grams) Fixed overheads Profit During the month of November, you have found that only 15,000 units were made and sold and the financial results were as follows: £ 2.30 1.50 3.30 7.10 10.50 3.40 £ 153,900 (35,040) (23,360) (67,350) 28,150
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