Mickey Limited is a manufacturing business that uses a standard costing system. The company’s flexed budget for April 20X9 is: Sales £173,340 Costs Direct materials (£22,500) Direct labour (£37,684) Variable production overheads (£15,520) Fixed production overheads (£49,400) Profit 48,236 The company’s directors are presented with the following standard cost operating statement for the month:” Total Original budgeted net profit £44,540 Favourable (Adverse) Sales profit volume variance £3,696 Sales price variance £424 Direct materials price variance £1,372 Direct materials quantity variance £2,560 Direct labour rate variance - - Direct labour efficiency variance £480 Production overhead variance £240 Other overhead variance £3,360 Total £9,092 £3,040 £6,052 Actual net profit £50,592 “Required:” “Calculate the actual figures for sales, direct materials, direct labour, variable overheads, fixed overheads and profits.”
“Mickey Limited is a manufacturing business that uses a
|
Sales |
£173,340 |
|
Costs |
|
|
Direct materials |
(£22,500) |
|
Direct labour |
(£37,684) |
|
Variable production overheads |
(£15,520) |
|
Fixed production overheads |
(£49,400) |
|
Profit |
48,236 |
The company’s directors are presented with the following standard cost operating statement for the month:”
|
|
|
|
Total |
|
Original budgeted net profit |
|
|
£44,540 |
|
|
Favourable |
(Adverse) |
|
|
Sales profit volume variance |
£3,696 |
|
|
|
Sales price variance |
£424 |
|
|
|
Direct materials price variance |
£1,372 |
|
|
|
Direct materials quantity variance |
|
£2,560 |
|
|
Direct labour rate variance |
- |
- |
|
|
Direct labour efficiency variance |
|
£480 |
|
|
Production overhead variance |
£240 |
|
|
|
Other overhead variance |
£3,360 |
|
|
|
Total |
£9,092 |
£3,040 |
£6,052 |
|
Actual net profit |
|
|
£50,592 |
“Required:”
- “Calculate the actual figures for sales, direct materials, direct labour, variable overheads, fixed overheads and profits.”
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