1. K K Anderson Ltd. manufacture gearboxes for use in cars. At the start of the...

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1. K K Anderson Ltd. manufacture gearboxes for use in cars. At the start of the year, the management of Anderson Ltd. estimated that its costs would be: This was based on the following: ● .. . ● You have recently been employed by the company to establish a standard costing system. At the end of the year you were able to extract the following information: ● Direct labour Direct material Variable production overhead Fixed production overhead Administration overhead ● A. % of sales value 60825 labour costs £4.40/hour 32 000 units sold £210/unit selling price 160 000 hours were worked 12 80 employees 2000 hours worked by each employee 40 000 gearboxes manufactured in the year as budgeted production £200 unit selling price. variable production overheads were £640 000 fixed production overheads were £810 000 administration costs were £350 000 raw material prices were 10% higher than expected total expenditure on raw material was £3.696 M there were no opening or closing stocks of raw materials. Variable overheads Standard cost = Actual cost = Expenditure variance = Efficiency variance = (Add expenditure and efficiency variances to 'Operating Statement for the Year' on the final sheet of the calculations.) Fixed overheads Expenditure variance = Volume variance = (Add these variances to 'Operating Statement for the Year' on the final sheet of the calculations.) Admin overhead (treat as fixed) Expenditure variance = Volume variance = (Add these variances to 'Operating Statement for the Year' on the final sheet of the calculations.) 1. K K Anderson Ltd. manufacture gearboxes for use in cars. At the start of the year, the management of Anderson Ltd. estimated that its costs would be: This was based on the following: ● .. . ● You have recently been employed by the company to establish a standard costing system. At the end of the year you were able to extract the following information: ● Direct labour Direct material Variable production overhead Fixed production overhead Administration overhead ● A. % of sales value 60825 labour costs £4.40/hour 32 000 units sold £210/unit selling price 160 000 hours were worked 12 80 employees 2000 hours worked by each employee 40 000 gearboxes manufactured in the year as budgeted production £200 unit selling price. variable production overheads were £640 000 fixed production overheads were £810 000 administration costs were £350 000 raw material prices were 10% higher than expected total expenditure on raw material was £3.696 M there were no opening or closing stocks of raw materials. Variable overheads Standard cost = Actual cost = Expenditure variance = Efficiency variance = (Add expenditure and efficiency variances to 'Operating Statement for the Year' on the final sheet of the calculations.) Fixed overheads Expenditure variance = Volume variance = (Add these variances to 'Operating Statement for the Year' on the final sheet of the calculations.) Admin overhead (treat as fixed) Expenditure variance = Volume variance = (Add these variances to 'Operating Statement for the Year' on the final sheet of the calculations.)