Lapworth County Council has been awarded the office window cleaning contract against competition from private firms. The
Question:
Lapworth County Council has been awarded the office window cleaning contract against competition from private firms. The contract price is $6.20 per office window and budget and actual results for first quarter are as follows:
Required
1. Calculate the sales price and quantity variances.
2. Calculate the relevant sales and variable overhead variances.
3. Comment on the effectiveness of standard costing in the public sector.
Transcribed Image Text:
Budget 12,500 council building windows @ $6.20 each Cost of window cleaners (3,200 hours @ $7.20) Cost of cleaning materials (1,250 bottles cleaning liquids @ $5.00) Variable overheads (3,200 hours @ $4.50) Actual 11,750 council building windows @ $6.20 each Cost of window cleaners (3,050 hours @ $7.10) Cost of cleaning materials (1,160 bottles cleaning liquids @ $5.00) Variable overheads 23,040 6,250 14,400 21,655 5,800 13,945 $ 77,500 72,850
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Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 9780135628478
17th Edition
Authors: Srikant M. Datar, Madhav V. Rajan
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