Pak Management is engaged in car washing. Below are the budget and actual results of the Business
Question:
Pak Management is engaged in car washing. Below are the budget and actual results of the Business for June 2019. A total of 3 workers are employed in the business, including one experienced and 2 less experienced. Regardless of experience, it takes about 2 hours for an employee to clean a vehicle. Experienced worker receives 40 TL for a vehicle he cleans, while others receive 20 TL per vehicle. There was no increase in wages in June.
B
udget II De facto
Number of Cleared vehicles 200 II 225
Gross 30.000 TL II 39.375 TL
Variable costs
Material cost 1.500 TL II 2.250 TL
Workmanship 5.600 TL II 6.000 TL
Contribution 22. 900 TL II 31.125 TL
Fixed costs 9.500 TL II 9,500 TL
Operating profit 13.400 TL II 21.625 TL
Desired:
1. How many vehicles have the average number of vehicles budgeted for each employee? How many tools have each employee de facto cleared?
2. Prepare a flexible budget for June 2011.
3. Calculate sales price deviation and labor yield deviation for each employee type.
4. What information does the business need to obtain in addition to the profit or loss statement above in order to continue the activities more efficiently?
Cost Management Measuring, Monitoring and Motivating Performance
ISBN: 978-1119185697
3rd Canadian edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang-Hsuan Chen, Gail Cook