Mr. Sharp, the Finance Manager of Bright Limited tabled the following statements for the consideration of...
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Mr. Sharp, the Finance Manager of Bright Limited tabled the following statements for the consideration of the Director Finance Mr. F for the first quarter of the year. INCOME STATEMENT Sales revenue (18,000 units) Tk. 7,20,000.00 Less Cost of Goods Sold Direct Materials Direct Laboure Other direct Expenses Factory Over Head Administrative and selling Expenses Tk. 4,32,800.00 Tk. 1,16,600.00 Tk. 30,400.00 Tk. 44,000.00 Tk. 32,000.00 Tk. 6,55,800.00 Net Profit: Tk. 64,200.00 Budgeted Unit Selling Price: Tk. 38.00, Budgeted Units: 20,000 STATEMENT OF STANDARD COST & ACTUAL COST STANDARD Rate 7.50 ACTUAL Rate 8.00 Total Cost Input 54,100 53,000 N.A Total cost 4,32,800.00 1,16,600.00 30,400.00 Elements of Cost Direct Materials Direct Labour Other Direct Expenses Factory Expenses Fixed Expenses Variable Expenses Administrative exp. Input 54,000 54,000 18,000 4,05,000.00 1,08,000.00 27,000.00 2.00 2.20 1.50 NA 54.000 54,000 18,000 Not required 28,000.00 Not required 16,000.00 Not required 32,000.00 0.50 27,000.00 18,000.00 27,000.00 53,000 53,000 18,000 0.33 1.50 STATEMENT OF VARIENCES Material Price Variance =27,050.00(A), Material Usage variance =750.00(A) Labour Rate Variance =10,600(A), Labour Efficiency variance =2,000.00(F) Direct Expenses Variance = 3,400.00( A), Fixed Overhead Spending Variance = 2,000.00(F), Fixed Overhead Efficiency variance 500.00(F), Capacity Variance =3,500.00(A), Variable Overhead Spending Variance =1,667.67, (F), Variable Overhead Efficiency Variance 333.33(F), Administrative Overhead Spending Variance = 2,000.00(A), Capacity Variance =3,000.00(A),Sales Price Variance= 36,000.00(F), Sales Volume Variance = 76,000.00(A), From the above statements, please prepare a Reconciliation Statement profit variances with necessary details with interpretation. Mr. Sharp, the Finance Manager of Bright Limited tabled the following statements for the consideration of the Director Finance Mr. F for the first quarter of the year. INCOME STATEMENT Sales revenue (18,000 units) Tk. 7,20,000.00 Less Cost of Goods Sold Direct Materials Direct Laboure Other direct Expenses Factory Over Head Administrative and selling Expenses Tk. 4,32,800.00 Tk. 1,16,600.00 Tk. 30,400.00 Tk. 44,000.00 Tk. 32,000.00 Tk. 6,55,800.00 Net Profit: Tk. 64,200.00 Budgeted Unit Selling Price: Tk. 38.00, Budgeted Units: 20,000 STATEMENT OF STANDARD COST & ACTUAL COST STANDARD Rate 7.50 ACTUAL Rate 8.00 Total Cost Input 54,100 53,000 N.A Total cost 4,32,800.00 1,16,600.00 30,400.00 Elements of Cost Direct Materials Direct Labour Other Direct Expenses Factory Expenses Fixed Expenses Variable Expenses Administrative exp. Input 54,000 54,000 18,000 4,05,000.00 1,08,000.00 27,000.00 2.00 2.20 1.50 NA 54.000 54,000 18,000 Not required 28,000.00 Not required 16,000.00 Not required 32,000.00 0.50 27,000.00 18,000.00 27,000.00 53,000 53,000 18,000 0.33 1.50 STATEMENT OF VARIENCES Material Price Variance =27,050.00(A), Material Usage variance =750.00(A) Labour Rate Variance =10,600(A), Labour Efficiency variance =2,000.00(F) Direct Expenses Variance = 3,400.00( A), Fixed Overhead Spending Variance = 2,000.00(F), Fixed Overhead Efficiency variance 500.00(F), Capacity Variance =3,500.00(A), Variable Overhead Spending Variance =1,667.67, (F), Variable Overhead Efficiency Variance 333.33(F), Administrative Overhead Spending Variance = 2,000.00(A), Capacity Variance =3,000.00(A),Sales Price Variance= 36,000.00(F), Sales Volume Variance = 76,000.00(A), From the above statements, please prepare a Reconciliation Statement profit variances with necessary details with interpretation.
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Reconciliation Statement Budgeted Sales 20000 38 Sales Volume Var... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
Posted Date:
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