Chronicle Ltd produces stationery and journals. One of their products is the Daily Planner. The company's...

 

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Chronicle Ltd produces stationery and journals. One of their products is the Daily Planner. The company's operating budget for the month of September 20X2 included the following data for one Daily Planner: Selling price: Direct materials: Paper Plastic £7.50 per unit 125 pages @ £0.005 per page 0.075 kg @ £6 per kg 0.25 hours @ £8 per hour 0.15 hours @ £9 per hour 5,000 units Production and sales Fixed costs £2,000 The actual number of units produced and sold in September was 4,800 and the following actual cost data is available: Direct labour: Sales Direct materials: Direct labour Compilers Finishers Paper (125 pages per unit) Plastic (0.09 kg per unit) Compilers (£7.80 per hour) Finishers (£9.10 per hour) £ 35,760 (3,600) (2,808) (7.488) (5,897) (2.100) 13.867 Fixed costs Net profit The senior manager is happy that actual net profit is higher than budgeted net profit, but would like to understand the reasons behind this increase and has asked the manager of the Daily Planner department to explain her results. Requirements 2.1) Prepare a flexible budget for September 20X2. (no word count) (15 marks) 2.2) Prepare a reconciliation of budgeted profit and actual profit, calculating all relevant price, cost and efficiency variances. (no word count) (20 marks) 2.3) Using your calculations from (2.2) identify and explain three actions that could be taken in order to further improve the performance of the Daily Planner department. (maximum 300 words) (15 marks) Chronicle Ltd produces stationery and journals. One of their products is the Daily Planner. The company's operating budget for the month of September 20X2 included the following data for one Daily Planner: Selling price: Direct materials: Paper Plastic £7.50 per unit 125 pages @ £0.005 per page 0.075 kg @ £6 per kg 0.25 hours @ £8 per hour 0.15 hours @ £9 per hour 5,000 units Production and sales Fixed costs £2,000 The actual number of units produced and sold in September was 4,800 and the following actual cost data is available: Direct labour: Sales Direct materials: Direct labour Compilers Finishers Paper (125 pages per unit) Plastic (0.09 kg per unit) Compilers (£7.80 per hour) Finishers (£9.10 per hour) £ 35,760 (3,600) (2,808) (7.488) (5,897) (2.100) 13.867 Fixed costs Net profit The senior manager is happy that actual net profit is higher than budgeted net profit, but would like to understand the reasons behind this increase and has asked the manager of the Daily Planner department to explain her results. Requirements 2.1) Prepare a flexible budget for September 20X2. (no word count) (15 marks) 2.2) Prepare a reconciliation of budgeted profit and actual profit, calculating all relevant price, cost and efficiency variances. (no word count) (20 marks) 2.3) Using your calculations from (2.2) identify and explain three actions that could be taken in order to further improve the performance of the Daily Planner department. (maximum 300 words) (15 marks)