Teamco Ltd manufactures products, which have a standard selling price of £250 per unit. The company operates a standard costing system and values stocks at standard cost. The standard variable cost of a NY is as follows: Direct material per unit Direct labour (2 hours @ £40 per hour) Production overhead per unit The budgeted and actual variable costs for last month were as follows: Actual units Sales 42000 Production 50000 56000 The actual sales and variable costs for last month were as follows: Budget units 50000 £50 £80 £60
Teamco Ltd manufactures products, which have a standard selling price of £250 per unit. The company operates a standard costing system and values stocks at standard cost. The standard variable cost of a NY is as follows: Direct material per unit Direct labour (2 hours @ £40 per hour) Production overhead per unit The budgeted and actual variable costs for last month were as follows: Actual units Sales 42000 Production 50000 56000 The actual sales and variable costs for last month were as follows: Budget units 50000 £50 £80 £60
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Please help me
Transcribed Image Text:Teamco Ltd manufactures products, which have a standard selling price of £250 per unit. The
company operates a standard costing system and values stocks at standard cost. The standard
variable cost of a NY is as follows:
Direct material per unit
Direct labour (2 hours @ £40 per hour)
Production overhead per unit
The budgeted and actual variable costs for last month were as follows:
Actual units
Budget units
50000
Sales
42000
Production
50000
56000
The actual sales and variable costs for last month were as follows:
£
Sales
Direct materials (purchased and used)
Direct labour
Variable production overhead
£7,500,000
£3,000,000
£4.600,000
£3,300,000
Calculate the following cost variances for last month:
Direct Material Variance
i.
ii. Total Variable Production Overhead Variance
Direct Labour Variance
iii.
140
£50
£80
£60
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education