Question
In: Accounting
Paine Ltd makes and sells a single product. Annual sales in units for 2017 are expected...
Paine Ltd makes and sells a single product. Annual sales in units for 2017 are expected to be 200,000, and standard cost and selling price per unit is:
£
Selling price 35
Variable costs:
Materials 8
Labour 8
Overheads 2
Annual fixed overheads for 2015 are budgeted at:
Manufacturing: 600,000
Non-manufacturing 250,000
Actual production and sales for the first quarter was 45,000 units. The actual revenue and expenditure for the quarter was as follows:
Sales revenue 1,720,000
Expenditure:
Materials 365,500
Labour 375,500
Variable overhead 97,200
Fixed overheads
Manufacturing 135,000
Non-manufacturing 75,000
Paine Ltd divides the annual budget by 4 in order to produce quarterly variance analysis reports.
Required:
a) Prepare the first quarter variance analysis report showing the fixed budget, flexible budget and flexible budget variances.
b) Suggest how this report could be improved in terms of variable costs variance analysis, describing any extra information you would need in order to do so.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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Globus Autos sells a single product. 8500 units were sold
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A company makes and sells a single product, the variable cost of the production is $3...
A company makes and sells a single product, the variable cost of
the production is $3 per unit
and variable cost of selling is $1 per unit, fixed cost totalled
$600, and the selling price per unit
was $6. The company budgeted to make and sell 3 000 units in the
next year.
Required
Prepare a break even chart showing the expected amount of the
output and sales required to
break even.
Question 15 ABC Ltd produces a single product with a single grade of labour. It sales...
Question 15
ABC Ltd produces a single product with a single grade of labour.
It sales budget and finished goods inventory budget for period 3
are as follows:
Sales
700 units
Opening stock of finished goods 50
units
Closing stock of finished
goods 70 units
The goods are inspected only when production work is completed,
and it is budgeted that 105 of finished work will be scrapped.
The standard direct labour hour required in producing the
product is 3 hours....
Question 15 ABC Ltd produces a single product with a single grade of labour. It sales...
Question 15
ABC Ltd produces a single product with a single grade of labour.
It sales budget and finished goods inventory budget for period 3
are as follows:
Sales
700 units
Opening stock of finished goods 50
units
Closing stock of finished
goods 70 units
The goods are inspected only when production work is completed,
and it is budgeted that 105 of finished work will be scrapped.
The standard direct labour hour required in producing the
product is 3 hours....
ToyWorks Ltd. is a company that manufactures and sells a single product, which they call a...
ToyWorks Ltd. is a company that manufactures and sells a single
product, which they call a Toodle. For planning and control
purposes they utilize a monthly master budget,
which is usually developed at least six months in advance of the
budget year. Their fiscal year end is June 30.
During the summer of 2019, Chris Leigh, the ToyWorks controller,
spent considerable time with Pat Frazer, the Manager of Marketing,
putting together a sales forecast for the next budget year (July...
Rensing Ltd. estimates sales for the second quarter of 2017 will be as follows. Month Units...
Rensing Ltd. estimates sales for the second quarter of 2017 will
be as follows. Month Units April 2,530 May 2,420 June 2,310 The
target ending inventory of finished products is as follows. March
31 2,050 April 30 2,300 May 31 2,100 June 30 2,300 2 units of
material are required for each unit of finished product. Production
for July is estimated at 2,710 units to start building inventory
for the fall sales period. Rensing’s policy is to have an inventory...
Rensing Ltd. estimates sales for the second quarter of 2017 will be as follows. Month Units...
Rensing Ltd. estimates sales for the second quarter of 2017 will
be as follows.
Month
Units
April
2,590
May
2,450
June
2,360
The target ending inventory of finished products is as
follows.
March 31
2,030
April 30
2,240
May 31
2,170
June 30
2,330
2 units of material are required for each unit of finished product.
Production for July is estimated at 2,620 units to start building
inventory for the fall sales period. Rensing’s policy is to have an
inventory...
Rensing Ltd. estimates sales for the second quarter of 2017 will be as follows. Month Units...
Rensing Ltd. estimates sales for the second quarter of 2017 will
be as follows.
Month
Units
April
2,600
May
2,420
June
2,320
The target ending inventory of finished products is as
follows.
March 31
2,010
April 30
2,270
May 31
2,100
June 30
2,360
2 units of material are required for each unit of finished product.
Production for July is estimated at 2,670 units to start building
inventory for the fall sales period. Rensing’s policy is to have an
inventory...
Rensing Ltd. estimates sales for the second quarter of 2017 will be as follows. Month Units...
Rensing Ltd. estimates sales for the second quarter of 2017 will
be as follows.
Month
Units
April
2,600
May
2,500
June
2,380
The target ending inventory of finished products is as
follows.
March 31
2,030
April 30
2,290
May 31
2,140
June 30
2,380
2 units of material are required for each unit of finished product.
Production for July is estimated at 2,780 units to start building
inventory for the fall sales period. Rensing’s policy is to have an
inventory...
Rensing Ltd. estimates sales for the second quarter of 2017 will be as follows. Month Units...
Rensing Ltd. estimates sales for the second quarter of 2017 will
be as follows.
Month
Units
April
2,560
May
2,420
June
2,340
The target ending inventory of finished products is as
follows.
March 31
2,040
April 30
2,200
May 31
2,200
June 30
2,300
2 units of material are required for each unit of finished product.
Production for July is estimated at 2,800 units to start building
inventory for the fall sales period. Rensing’s policy is to have an
inventory...
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