“Mickey Limited is a manufacturing business that uses a standard costing system. The company’s flexed budget for April 20X9 is:

Sales	£173,340
Costs
Direct materials	(£22,500)
Direct labour	(£37,684)
Variable production overheads	(£15,520)
Fixed production overheads	(£49,400)
Profit	48,236

The company’s directors are presented with the following standard cost operating statement for the month:”

			Total
Original budgeted net profit			£44,540
	Favourable	(Adverse)
Sales profit volume variance	£3,696
Sales price variance	£424
Direct materials price variance	£1,372
Direct materials quantity variance		£2,560
Direct labour rate variance	-	-
Direct labour efficiency variance		£480
Production overhead variance	£240
Other overhead variance	£3,360
Total	£9,092	£3,040	£6,052
Actual net profit			£50,592

“Required:”

1. “Calculate the actual figures for sales, direct materials, direct labour, variable overheads, fixed overheads and profits.”
2. “Outline for the directors the main points about the company’s performance during April 20X9.”

Answer rating: 100% (QA)

Based on the above findings the directors can point out the f... View the full answer