KAFADE Limited manufactures a product which is called BEAUTY. One gallon of beauty requires amongst other...
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KAFADE Limited manufactures a product which is called BEAUTY. One gallon of beauty requires amongst other ingredients Budgetary Cost per kg Either 5kgs of y or 5kgs of z N y Z 35 25 Therefore, the company decided to tool up for z, to plan production on z, it was discovered after the budget period that the following were reasonable price at which y and z might have been obtained. N40 N50 Actual production was 100,000 gallons of Beauty with 520,000 kg of z at a cost of N45 per kg, that is, total cost of N23,400,000. Analyse the total cost variance into: (a) Traditional and (b) Planning and operational variances. KAFADE Limited manufactures a product which is called BEAUTY. One gallon of beauty requires amongst other ingredients Budgetary Cost per kg Either 5kgs of y or 5kgs of z N y Z 35 25 Therefore, the company decided to tool up for z, to plan production on z, it was discovered after the budget period that the following were reasonable price at which y and z might have been obtained. N40 N50 Actual production was 100,000 gallons of Beauty with 520,000 kg of z at a cost of N45 per kg, that is, total cost of N23,400,000. Analyse the total cost variance into: (a) Traditional and (b) Planning and operational variances.
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