George Fine Company produces shoes and wallets. Selected data
for the past year follow:
Shoes Wallets
Production (units) 90,000 190,000
Sales (units) 80,000 200,000
Selling price £7 £9
Direct labour hours 80,000 60,000
Manufacturing costs: £ £
Direct Materials per unit 0.75 0.5
Direct Labour per unit 2.5 2.0
Variable overheads per unit 0.20 0.13
Fixed overhead:
Direct 70,000 70,000
Non-manufacturing costs:
Variable selling 30,000 60,000
Direct fixed selling 60,000 65,000
Budgeted fixed overhead for the year, £140,000, equalled the...