76 % (341 Review)
Variance analysis and reconciliation of budgeted and actual profit.
Bronte Ltd manufactures a single product, a laminated kitchen unit with a standard cost of Â£75 made up as follows:
Direct materials (15 sq. metres at Â£3 per sq. metre)
Direct labour (5 hours at Â£4 per hour)
Variable overheads (5 hours at Â£2 per hour)
Budgeted fixed overheads are Â£5000 per month.
The standard selling price of the kitchen unit is Â£100. The monthly budget projects production and sales of 1000 units. Actual for the month of April are as follows:
Sales 1400 units at Â£102
Production 1400 units
Direct materials 22 000 sq. metres at Â£4 per sq. metre
Direct wages 6800 hours at Â£5
Variable overheads Â£11 000
Fixed overheads Â£6000
You are required to reconcile actual and budgeted profit showing all the appropriate variances.
Your answer will be ready within 2-4 hrs. Meanwhile, check out other millions of Q&As and Solutions Manual we have in our catalog.