(b) Breakthrough Ltd provided the following standard cost card. Its budgeted production and sales for DecembeI 2021 were 10,000 units @ TZS 200,000 per unit. Budgeted fixed overheads were Tshs 200 million. The standard cost card of breakthrough Ltd. TZS Direct material 4 kg of A at Tshs 5,000 per kg 2 kg of B at Tshs 20,000 per kg Direct labour (5 hours per unit of production at Tshs15,000 per hour) Variable overhead (5 hours at Tshs 5,000 per labour hour) 20,000 40,000 75,000 25.000 Total variable cost 160.000 The company has also provided the actual results for December 2021. (Al the units produced during the period were sold. There is no closing inventory). TZS 000 TZS 000 2,089,500 Sales 10,500 units at Tshs199,000 Direct material A. 40,000kg at Tshs 6,000 per kg B. 23.000kg at Tshs 20,000 per kg Direct Labour 63,000 houcs at Tshs 15,000 per hour Variable overheads 63,000 hours at Tshs 4,000 per hour 240,000 460,000 945,000 252.000 (1,897,000) Actual contribution 192,500 Actual fixed overheads (178.000) Actual profit 14,500 Required: Calculato: i. Material price and usage variance, H. Labour rate and efficiency variance, lil. Variable overhead expenditure and efficiency variance, Fixed overhead expenditure variance, iv. Sales margin and Sales price variance V.
(b) Breakthrough Ltd provided the following standard cost card. Its budgeted production and sales for DecembeI 2021 were 10,000 units @ TZS 200,000 per unit. Budgeted fixed overheads were Tshs 200 million. The standard cost card of breakthrough Ltd. TZS Direct material 4 kg of A at Tshs 5,000 per kg 2 kg of B at Tshs 20,000 per kg Direct labour (5 hours per unit of production at Tshs15,000 per hour) Variable overhead (5 hours at Tshs 5,000 per labour hour) 20,000 40,000 75,000 25.000 Total variable cost 160.000 The company has also provided the actual results for December 2021. (Al the units produced during the period were sold. There is no closing inventory). TZS 000 TZS 000 2,089,500 Sales 10,500 units at Tshs199,000 Direct material A. 40,000kg at Tshs 6,000 per kg B. 23.000kg at Tshs 20,000 per kg Direct Labour 63,000 houcs at Tshs 15,000 per hour Variable overheads 63,000 hours at Tshs 4,000 per hour 240,000 460,000 945,000 252.000 (1,897,000) Actual contribution 192,500 Actual fixed overheads (178.000) Actual profit 14,500 Required: Calculato: i. Material price and usage variance, H. Labour rate and efficiency variance, lil. Variable overhead expenditure and efficiency variance, Fixed overhead expenditure variance, iv. Sales margin and Sales price variance V.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:(b) Breakthrough Ltd provided the following standard cost card. Its budgeted production and sales for December
2021 were 10,000 units @ TZS 200,000 per unit. Budgeted fixed overheads were Tshs 200 millian.
The standard cost card of breakthrough Ltd.
TZS
Direct material
4 kg of A at Tshs 5,000 per kg
2 kg ol B at Tshs 20,000 per kg
Direct labour
(5. hours per unit of production at Tshs15,000 per hour)
Variable overhead (5 hours at Tshs 5,000 per labour hour)
20,000
40,000
75,000
25.000
Total variable cost
160.000
The company has also provided the actual results for December 2021. (AI the units produced during the period
were sold. There is no closing inventory).
TZS 000
TZS 000
2,089,500
Sales 10,500 units at Tshs199,000
Direct material
A. 40,000kg at Tshs 6,000 per kg
B. 23,000kg at Tshs 20,000 per kg
Direct Labour
63.000 houcs at Tshs 15,000 per hour
Variable overheads
63,000 hours at Tshs 4,000 per hour
240,000
460,000
945,000
252.000
(1,897,000)
Actual contribution
192,500
Actual fixed overheads
(178.000)
14,500
Actual profit
Required: Calculato:
Material price and usage variance,
Labour rate and efficiency variance,
Variable overhead expenditure and efficiency variance,
i.
iv.
Fixed overhead expenditure variance,
V.
Sales margin and Sales price variance
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