QUESTION A company manufactures a food product data for which for one week has been analyzed as follows: Standard cost data: K Direct materials: 10 units at K1.50 15 Direct wages: 5 hours at K4.00 20 Production overhead: 5 hours at K5.00 25 60 Other overhead may be ignored. Profit margin is 20% of sales Price. Budgeted sales are K30,000 per week. Actual data: Sales K29,880 Direct materials K6,435 Direct wages K8,162 Analysis of variances; Adverse Favourable Direct materials price 585 Usage 375 Direct labour: rate 318 Efficiency 180 Production overhead: expenditure 200 Volume 375 BBAC 212 ASSIGNMENT ONE SEMISTER 2 2021 It can be assumed that the production and sales achieved resulted in no changes of stock. REQUIRED; From the data given, to calculate: (i) the actual output; (ii) the actual profit; (iii) the actualn price per unit of material (iv) actual labour rate per hour; (v) the amount of production overhead incurred; (vi) the amount of overhead absorbed; (vii) the amount of production efficiency variance; (viii) the selling price variance (ix) the sales volume profit variance.
QUESTION
A company manufactures a food product data for which for one week has been analyzed as
follows:
Direct materials: 10 units at K1.50 15
Direct wages: 5 hours at K4.00 20
Production overhead: 5 hours at K5.00 25
60
Other overhead may be ignored.
Profit margin is 20% of sales Price.
Budgeted sales are K30,000 per week.
Actual data:
Sales K29,880
Direct materials K6,435
Direct wages K8,162
Adverse Favourable
Direct materials price 585
Usage 375
Direct labour: rate 318
Efficiency 180
Production overhead: expenditure 200
Volume 375
BBAC 212 ASSIGNMENT ONE SEMISTER 2 2021
It can be assumed that the production and sales achieved resulted in no changes of stock.
REQUIRED;
From the data given, to calculate: (i) the actual output; (ii) the actual profit; (iii) the actualn
price per unit of material (iv) actual labour rate per hour; (v) the amount of production
overhead incurred; (vi) the amount of overhead absorbed; (vii) the amount of production
efficiency variance; (viii) the selling price variance (ix) the sales volume profit variance.
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