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variable overhead efficiency variance fixed overhead expenditure variance fixed overhead volume variance actual gross profit / loss

The budgeted production and sales for July were 1 000 units. The fixed overhead absorption rate has been calculated based on budgeted production for the month. Actual results for July were as follows: Production 1 400 units Sales 1 200 units Selling price R316 per unit Direct materials 22 000 metres @ R12 per metre Direct labour 6 800 hours @ R 15 per hour Variable production overheads R33 000 Fixed production overheads R18 000 No materials inventories are held. Required: Prepare a statement for the budgeted gross profit with the actual gross profit for July. Your statement should show the following: Sales volume profit variance, Sales price variance, Direct material price variance, Direct material usage variance, Direct labour rate variance, Direct labour efficiency variance, Variable overhead expenditure variance, Variable overhead efficiency variance . . QUESTION 5 [Total: 20] BCJ Distributors manufactures and sells a single product. The company operates a standard absorption costing system and absorbs overheads on the basis of direct labour hours. The standard selling price and standard costs for one unit of the product are as follows: per unit (R) Selling price 310 Direct material 15 metres @ R10 per metre 150 Direct labour 5 hours @ R12 per hour 60 Variable production overheads 4 hours @ R6 per hour 24 Fixed production overheads 4 hours @ R3 per hour 12 The budgeted production and sales for July were 1 000 units. The fixed overhead absorption rate has been calculated based on budgeted production for the month. Actual results for July were as follows: Production 1 400 units Sales 1 200 units Selling price R316 per unit A