19. Peters & Co manufactures casings for toy drones. The standard cost of this product is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
19. Peters & Co manufactures casings for toy drones. The standard cost of this product is as follows: Material X 8kg At $4/kg 32.00 Material Y 4kg At $7/kg 28.00 Labour 3 hours At $17/hour 51.00 Variable overheads 3 hours At $13/hour 39.00 Fixed overheads 12.50 Total Cost 162.50 Variable overheads are absorbed on a labour hour basis. The standard selling price is $199 and budgeted production and sales for April 2023 was 120,000 units. In this month, actual sales and production were 124,500 units and sales revenue totalled $23,779,500. Actual costs in the month were as follows: $ Material X 809,250 kg 3,358,388 Material Y 529,125 kg 3,677,419 Labour 423,300 hours 6,561,150 Variable overheads 5,756,880 Fixed overheads 1,560,000 Total Costs 20,913,837 Required: (a) (b) Produce a performance report reconciling the actual profit to the budgeted profit for the year, using the contribution approach. (14 marks) Write a brief report for the directors of the company to explain possible causes for each variance and drawing attention to any possible. interdependence between any of these variances. (6 marks) (Total 20 marks) 19. Peters & Co manufactures casings for toy drones. The standard cost of this product is as follows: Material X 8kg At $4/kg 32.00 Material Y 4kg At $7/kg 28.00 Labour 3 hours At $17/hour 51.00 Variable overheads 3 hours At $13/hour 39.00 Fixed overheads 12.50 Total Cost 162.50 Variable overheads are absorbed on a labour hour basis. The standard selling price is $199 and budgeted production and sales for April 2023 was 120,000 units. In this month, actual sales and production were 124,500 units and sales revenue totalled $23,779,500. Actual costs in the month were as follows: $ Material X 809,250 kg 3,358,388 Material Y 529,125 kg 3,677,419 Labour 423,300 hours 6,561,150 Variable overheads 5,756,880 Fixed overheads 1,560,000 Total Costs 20,913,837 Required: (a) (b) Produce a performance report reconciling the actual profit to the budgeted profit for the year, using the contribution approach. (14 marks) Write a brief report for the directors of the company to explain possible causes for each variance and drawing attention to any possible. interdependence between any of these variances. (6 marks) (Total 20 marks)
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
This assignment requires you to complete the 2022 tax reporting for a fictional woman named Anna Smith. Question 1 T1 - step 4 - line 66 This is Anna's taxable income Answer: Question 2 T1 - step...
-
Abstract Aggregate production planning is a critical skill for anyone studying operations and supply chain management. Because most of the world's manufacturing occurs in China, this case takes place...
-
The average of 4 consecutive odd positive integers is 16. The product of the smallest and largest positive odd integer is 1. 210 2. 247 3. 294 4. 320 None of the above 5.
-
1. Keeping professionals excited about work that is routine and standardized and chaotic is a major challenge for Symantec's managers. How could they use technical, human, and conceptual skills to...
-
Calculate the missing amounts in the following table: Stockholders' Equity Common Stock Retained Earnings Company Assets Liabilities $ 50,000 $30,000 $62,000 A 50,000 85,000 215,000 10,000 25,000...
-
Taylor is engaged to audit Rex Wholesaling for the year ended December 31, 1999. Taylor considered internal controls over purchasing, receiving, trade accounts payable, and cash disbursement and has...
-
Aztec Company sells its product for $ 180 per unit. Its actual and projected sales follow. All sales are on credit. Recent experience shows that 20% of credit sales is collected in the month of the...
-
To protect the nation against terrorism, the President proposed the enactment of legislation that would authorize the Secretary of Homeland Security ("the Secretary") to issue "National Security...
-
A firm relies on R&D to maintain profitability. The firm needs to determine the maximum amount to invest today (or invest in phase I) for its three-phased project. Phase I: Research. (Invest R{)...
-
DO NOT MODIFY MAIN.CPP DO NOT MODIFY MAIN.CPP DO NOT MODIFY MAIN.CPP NameTag.cpp = #include #include #include "NameTag.h" using namespace std; namespace sdds { void NameTag::setEmpty() { m_name =...
-
Use the following selected data about Comfort Bhd. and prepare the operating cash flows of the company for the year 2020. Balances Sheet Data Account receivables Equipment Bonds payable Salaries...
-
ABC Hospital is a non-profit entity that does not have to pay income taxes. Management is considering buying an automated blood analysis machine that will significantly reduce the time a lab...
-
In this part, we will consider both path loss and Rayleigh fading. Specifically, let P (in Watt) denote the transmit power, and Ih| is the channel gain. This means the received power is calculated as...
-
B. P Company: Job 1.......... 2 3 4 5 6 The following summary data are from the job order cost sheets of Castle Started 9/10 9/17 9/25 9/27 10/14 10/23 Dates Finished 9/20 9/29 10/11 10/19 11/10...
-
Figure 1 shows a schematic 3R planar robot which has 3 revolute joints, used to represent 1 fully actuated robot finger. YB 1 YE E L03 XB Figure 1: A fully actuated robot finger is modeled as a 3...
-
Juno MacGuff (Ellen Page) is a fairly typical 16-year-old teenager with attitude and a quick tongue. She decides to experiment with sex with her friend Paulie Bleeker (Michael Cera). This results in...
-
One study found that the elderly who do not have children dissave at about the same rate as the elderly who do have children. What might this finding imply about the reason the elderly do not dissave...
-
Mexia Inc. has been a wholesale distributor of automobile parts for domestic automakers for 20 years. Mexia has suffered through a recent slump in the domestic auto industry, and its performance has...
-
How does the selection of normal or maximum capacity affect operating profit in setting the overhead rate?
-
Most companies keep plant asset records to identify equipment and its original cost by location or department. However, charges for depreciation, property tax, and fire insurance are often...
-
A stirrer-container assembly contains a certain amount of fluid. The stirrer performs \(3 \mathrm{hp}\) work on the system. The heat developed by stirring is \(4000 \mathrm{~kJ} / \mathrm{h}\) and is...
-
A system consisting of a gas confined in a cylinder undergoes a series of processes shown in Fig. 2.11. During the process A-1-B, \(70 \mathrm{~kJ}\) of heat is added while it does 45 \(\mathrm{kJ}\)...
-
Derive the mathematical expression of the first law of thermodynamics.
Study smarter with the SolutionInn App