(a) The Hull factory of United Industrial Manufacturers makes just one product line. The current standard...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(a) The Hull factory of United Industrial Manufacturers makes just one product line. The current standard cost (of one unit) of the product is as follows: Direct labour (15 minutes) Direct materials (2 metres) Fixed overheads (based on the budgeted monthly output of 20,000 units) Selling price Profit £ Sales revenue Direct labour (4,000 hours) Direct materials (32,000 metres) Fixed overheads 2.30 1.50 3.30 7.10 10.50 £3.40 During last month, due to an unexpected fall in demand for the product, only 15,000 units were made and sold. The actual results for last month were as follows: £ 153,900 (35,040) (23,360) (67,350) 125,750 £28.150 Sales revenue Direct labour Direct materials Fixed overheads Profit (b) Calculate the following variances: Sales volume variance Sales price variance Direct labour Original budget variance Direct labour rate variance Direct material usage variance Direct material price variance. Fixed overheads variance Budget Profit Favorable variances efficiency Unfavorable variances Actual Profit Actual budget Calculation (c) a statement that reconciles the budgeted actual operating profit for the Hull factory for last month, going into as much detailed analysis as the above information allows. Flexible budget Result Favorable/unfavora ble (a) The Hull factory of United Industrial Manufacturers makes just one product line. The current standard cost (of one unit) of the product is as follows: Direct labour (15 minutes) Direct materials (2 metres) Fixed overheads (based on the budgeted monthly output of 20,000 units) Selling price Profit £ Sales revenue Direct labour (4,000 hours) Direct materials (32,000 metres) Fixed overheads 2.30 1.50 3.30 7.10 10.50 £3.40 During last month, due to an unexpected fall in demand for the product, only 15,000 units were made and sold. The actual results for last month were as follows: £ 153,900 (35,040) (23,360) (67,350) 125,750 £28.150 Sales revenue Direct labour Direct materials Fixed overheads Profit (b) Calculate the following variances: Sales volume variance Sales price variance Direct labour Original budget variance Direct labour rate variance Direct material usage variance Direct material price variance. Fixed overheads variance Budget Profit Favorable variances efficiency Unfavorable variances Actual Profit Actual budget Calculation (c) a statement that reconciles the budgeted actual operating profit for the Hull factory for last month, going into as much detailed analysis as the above information allows. Flexible budget Result Favorable/unfavora ble
Expert Answer:
Answer rating: 100% (QA)
To compute the requirement using excel Formula A 1 2 Units 3 Sales 4 Variable Cost 5 Direct Labor 6 Direct material 7 Total variable cost B5B6 Result ... View the full answer
Posted Date:
Students also viewed these mathematics questions
-
The same company finds the price-demand relation can be modelled by x = 20- Find (a) elasticity of demand; (b) the elasticity when price is $10; (c) if we increase the price from $10 to a higher...
-
Enviro Company issues 8%, 10-year bonds with a par value of $290,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price...
-
2. Based on the following balanced equation, 2 Fe(s) + 3 CuSO4(aq) a. What is the charge on the iron in the product, Fe(SO4)? b. If 0.5300 g of iron is reacted, how many moles of copper should be...
-
Aria Perfume, Inc.. sold 3,210 boxes of white musk soap during January of 2016 at the price of $90 per box. The company offers a full refund for any product returned within 30 days from the date of...
-
Suppose that a simple random sample is taken from a normal population having a standard deviation of 10 for the purpose of obtaining a 95% confidence interval for the mean of the population. a. If...
-
Diversification is good for shareholders. So why shouldnt managers acquire firms in different industries to diversify a company?
-
This exercise considers the data described in the Section 13.2.2 ratemaking classification example using data in Table 13.3 Table 13.3 . a. Fit a gamma regression model using a log-link function with...
-
Using the following figure, perform resource leveling. Assume that each task can be performed independently of the othertasks. Task 1 (2 workers) Task 2 (1 worker) Task 3 (3 workers) I Task 4 (2...
-
How do emerging technologies, such as online dispute resolution platforms and artificial intelligence-mediated negotiation tools, reshape the landscape of conflict resolution, and what ethical and...
-
The primary purpose of the reformer is to convert methane and water to carbon monoxide and hydrogen (Equation 13.1). The extent of this reaction is limited by chemical equilibrium. where Subscript...
-
Remote desktop utilities are something we use everyday in helpdesk positions. Take a look at the different remote desktop options, why do you think utilizing one of these tools would be helpful than...
-
True Or False Under a coordination-of-benefits provision, an insurer is responsible for its pro rata share of the damages as long as the insured was driving her own vehicle.
-
True Or False No-fault insurance was created on the premise that it would result in prompt payment to insureds for economic damages and to reduce automobile insurance premiums.
-
True Or False The insurer is held to a higher standard of care in third-party cases than in first-party cases.
-
Describe the arbitration process followed when resolving a typical dispute pertaining to insurance coverage.
-
True Or False Insureds have no obligation to cooperate with their insurer in the subrogation process.
-
Do a trace of the following algorithm with n = 0, n = 2 and n = 4. What does the algorithm seem to be doing? Input: n Output: out Algorithm MYSTERY out 1; [n is a nonnegative integer] [out will be...
-
a) Calculate the goodwill that was paid by Major Ltd on the acquisition of Minor Ltd. [10 marks] b) Prepare the consolidated statement of financial position for Major Ltd at 31 July 20X8. [30 marks]...
-
When the Glen Canyon hydroelectric power plant in Arizona is running at capacity, 690 m 3 of water flows through the dam each second. The water is released 220 m below the top of the reservoir. If...
-
A pronghorn, the fastest North American animal, is capable of running at 18 m/s (40 mph) for 10 minutes, after which it must slow down. The time limit isnt because the pronghorn runs out of energy;...
-
When the hoof of a galloping horse hits the ground, the digital flexor tendon in its lower leg may stretch by 5% in length, a significant stretch for this 45 cm tendon. The tendon is elastic; mostbut...
Study smarter with the SolutionInn App