NUMERICAL PROBLEMS LA company manufactures only a single product and the operating data for January 2015 are as followa: Product Cost per Unit: Materials 45 Direct Labour 30 Variable Factory Overheads Fixed Factory Overheads 15 70 160 Production 10,000 units Sales 8,000 units Selling Price per Unit Fixed Selling and Administration Exp. Variable Selling and Administration Exp. 7 240 7 1,60,000 * 90,000 bales ? 19,20,000; Value of Closing Stock 7 3.20.000; Gross Profit 6,40,000; Net Profit ? 3,90,000]
NUMERICAL PROBLEMS LA company manufactures only a single product and the operating data for January 2015 are as followa: Product Cost per Unit: Materials 45 Direct Labour 30 Variable Factory Overheads Fixed Factory Overheads 15 70 160 Production 10,000 units Sales 8,000 units Selling Price per Unit Fixed Selling and Administration Exp. Variable Selling and Administration Exp. 7 240 7 1,60,000 * 90,000 bales ? 19,20,000; Value of Closing Stock 7 3.20.000; Gross Profit 6,40,000; Net Profit ? 3,90,000]
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 5E: On April 30, the end of the first month of operations, Joplin Company prepared the following income...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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