Base on the attached file,

Required to:

1. Calculate the flexed and actual budget

1. Calculate the following variances:

• Sales volume variances
• Sales price variances
• Direct material usage variances
• Direct material price variances
• Direct labour efficiency variances
• Direct labour rate variances
• Fixed overhead spending variance

1. providing possible explanations for the variances that you have calculated
2. suggestionsastohowthecompanymighttrytoimproveitscostcontrol.
3. SHOW ALL YOUR WORKING AND FORMULA USED WITH DETIALED EXPLANATION

Desconins Ltd is a furniture manufacturer. One of its products, a table, has the following standard costs: Direct materials (8m @ 3/m) 24.00 Direct labour (1 hour @ 25/hr) 25.00 Fixed overheads 16.00 65.00 Selling price 95.00 Standard profit margin 30.00 The table is made from solid oak and the above materials reflect the size of the table in square metres. The monthly production and sales are planned to be 800 units. The actual results for March were as follows: Sales revenue 75,330 Less Direct materials (19,250) (7,000m) Direct labour (22,100) (850 hours) Fixed overheads (13,000) Operating profit 20,980 There was no opening or closing stocks. The company manufactured and sold 810 tables. Required: a) Calculate the flexed and actual budget b) Calculate the following variances: Sales volume variances Sales price variances Direct material usage variances Direct material price variances Direct labour efficiency variances Direct labour rate variances Fixed overhead spending variance c) providing possible explanations for the variances that you have calculated d) suggestions as to how the company-Desconins Ltd. might try to improve its cost control