General Additional Information Case Study

Jumping Flash Pty Ltd is an innovative organisation that produces environmentally friendly pumps

for water management. The design of this pump is unique and represents an efficient and

environmentally friendly system that may be used on any mine site. These pumps combine positive

features of economy, efficiency and innovation. The company has just completed its second year of

operations.

You are now employed as the management accountant for Jumping Flash Pty Ltd and you have

been requested to produce a performance report $($using Excel$)$ and the calculate all the relevant

variances.

Information

The following details are available:

SALES AND SALES REVENUE

Note: Both these production levels are within the relevant range.

STANDARD COST DETAILS General Additional Information

$($a$)$ The variable selling and distribution expenses are budgeted to be $3\%$ of sales revenue.

$($b$)$ The budgeted fixed selling and distribution overhead is $$370,000.$

$($c$)$ Overheads are applied to production on the basis of Direct Labour Hours.

$($d$)$ Material price variance is to be calculated when materials are issued to production.

$($e$)$ Production volume is equal to sales volume.

ACTUAL COST$/$USAGE DETAILS

After you have spent the quarter gathering and recording the above operation and cost data from all

sections, analyse and interpret this data and be sure to comply with organisational procedures.

Task $1$ Performance Report

From the above information prepare a performance report for the quarter ending $30$ September

$2018$ for presentation to the General Manager of the company.

Your report should include the actual costs for the period together with flexible and master budget

figures.

In addition you should include the variances for each item of revenue and variable expense. You

must also indicate whether the variances are $(F)$ favourable or $($U$)$ unfavourable.

Ensure structure and format of budgets are clear and comply with management information

requirements

$(a)$ The variable selling and distribution expenses are budgeted $tobe3\%of$ sales revenue.

$(b)$ The budgeted fixed selling and distribution overhead $is$ $$370,000F$