Budgeting is the basis for all business success.” Do you agree? Justify your answer. 

b. Characterize Divisional performance measures. State the three principal measures to measure divisional performance. 

c. Peacock Company produces quality maize meals in packets and sells to retailers. The company purchases the raw materials from the farmers directly. Since the commencement of business Peacock uses standard costing to manage the costs. The standard cost card shows the following costs to produce one packet of maize meal. Materials required 1.5 kg at £12 per kg £18 Labour required 0.6 hours at £24 per hour £14.40 Manufacturing overheads(variable) 0.6 hours at £5 £3 During April 2021, the production and sales were3,000 packets of maizemeal. the material purchase was 8000kg at the rate of £11.50 per kilogram, but only 6,000kg were used in the month of April. There was no opening stock of material on the 1st of April. Labour hours used in April were 1600 hrs and the total labour cost was £40,000. The manufacturing overheads (variable) recorded for April was £7,200. You are required to calculate: 

i. Material price variance 

ii. Material Usage variance 

iii. Material cost Variance 

iv. Labour Rate variance 

v. Labour efficiency variance 

vi. Labour cost variance 

vii. Variable overhead expenditure variance 

viii. Variable overhead efficiency variance 

ix. Variable overhead variance.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below a Budget ing is the basis for all business success Do you agree Just ify your answer ANS WER Yes I agree that budget ing is the basis for a... View the full answer