5 Pankhurst PLC make and sell a single product. Annual sales in units for 2022are expected to be 210,000, and standard cost and selling price per unit is:£30Selling priceVariable costs:MaterialsLabourOverheadsAnnual fixed overheads for 2022 are budgeted at:Manufacturing:528,000Non-manufacturing 336,000Actual production and sales for the month of January was 16,000 units. The actualrevenue and expenditure for the month of January 2022 was as follows:Sales revenue502,000Expenditure:Materials118,500Labour125,50032,400Variable overheadFixed overheads:ManufacturingNon-manufacturing40,00035,000Pankhurst PLC divides the annual budget by 12 in order to produce monthly controlreports.Required:a) Prepare the monthly control report showing original budget, flexed budget andvariances.882

Budget is a financial and/or quantitative statement, prepared and approved prior to a defined period…

Pankhurst PLC make and sell a single product. Annual sales in units for 2022 are expected to be 210,000, and standard cost and selling price per unit is: Selling price Variable costs: Materials Labour Overheads 42 30 882 8

Pankhurst PLC make and sell a single product. Annual sales in units for 2022 are expected to be 210,000, and standard cost and selling price per unit is: Selling price Variable costs: Materials Labour Overheads 42 30 882 8

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PB: Lens & Shades sells sunglasses for $37 each and is estimating sales of 21,000 units in January and...

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Pankhurst PLC make and sell a single product. Annual sales in units for 2022
are expected to be 210,000, and standard cost and selling price per unit is:
£
30
Selling price
Variable costs:
Materials
Labour
Overheads
Annual fixed overheads for 2022 are budgeted at:
Manufacturing:
528,000
Non-manufacturing 336,000
Actual production and sales for the month of January was 16,000 units. The actual
revenue and expenditure for the month of January 2022 was as follows:
Sales revenue
502,000
Expenditure:
Materials
118,500
Labour
125,500
32,400
Variable overhead
Fixed overheads:
Manufacturing
Non-manufacturing
40,000
35,000
Pankhurst PLC divides the annual budget by 12 in order to produce monthly control
reports.
Required:
a) Prepare the monthly control report showing original budget, flexed budget and
variances.
882

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