Proctar plc makes stoves. Details regarding unit standard costs and revenue are as follows: Sales price
Question:
Proctar plc makes stoves. Details regarding unit standard costs and revenue are as follows:
€
Sales price | 600 |
Direct labour (10 hrs at €15 per hr) | 150 |
Direct materials (60kg) | 180 |
Fixed cost per unit | 70 |
Standard profit | 200 |
The budgeted output for March was 400 stoves; the actual output was 350 stoves, which was sold for €227,500. Total budgeted fixed overheads were €28,000. There were no inventories at the start or end of March.
The actual production costs were: | € |
Direct labour (4000 hrs) | 63,000 |
Direct materials (18,000 kgs) | 72,000 |
Fixed Overheads Required | 30,000 |
Calculate the variances for March from the available information and use them to reconcile the budgeted and actual profit figures
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ