Tuko Ltd manufactures and sells a special hand-bag for the Irish market. The company operates a...
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Tuko Ltd manufactures and sells a special hand-bag for the Irish market. The company operates a standard variable costing system but unfortunately, due to a recent flood in the accounts department, both the standard cost card which outlines the standard cost per hand-bag. and the budget for the period March 2021 have been destroyed. However, the management accountant has managed to retrieve some information regarding the actual costs and variances for the period and recalls that the budgeted output for the period was 7000 hand-bags. Variances Direct Labour rate variance Direct Labour efficiency variance Direct material price variance Direct material usage variance Fixed overhead variance Variable overhead expenditure variance Variable overhead efficiency variance Actual Production and Cost Data for March 2021 Actual production Material costs Labour costs Variable overhead costs Fixed overhead costs €1,120 Fav €1,040 Fav €370 Fav €252 Fav €500 Un-Fav You are required to: (a) €2,350 Fav €910 Fav 7,200 sports bags 420 kgs costing €8,450 9,100 hours costing €35,280 €29,500 €28,500 Use the available data to derive the following: (i) The standard cost card for the hand-bag. The total cost budget for the month of March 2021. (16 marks) Tuko Ltd manufactures and sells a special hand-bag for the Irish market. The company operates a standard variable costing system but unfortunately, due to a recent flood in the accounts department, both the standard cost card which outlines the standard cost per hand-bag. and the budget for the period March 2021 have been destroyed. However, the management accountant has managed to retrieve some information regarding the actual costs and variances for the period and recalls that the budgeted output for the period was 7000 hand-bags. Variances Direct Labour rate variance Direct Labour efficiency variance Direct material price variance Direct material usage variance Fixed overhead variance Variable overhead expenditure variance Variable overhead efficiency variance Actual Production and Cost Data for March 2021 Actual production Material costs Labour costs Variable overhead costs Fixed overhead costs €1,120 Fav €1,040 Fav €370 Fav €252 Fav €500 Un-Fav You are required to: (a) €2,350 Fav €910 Fav 7,200 sports bags 420 kgs costing €8,450 9,100 hours costing €35,280 €29,500 €28,500 Use the available data to derive the following: (i) The standard cost card for the hand-bag. The total cost budget for the month of March 2021. (16 marks)
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Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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