KM Ltd. presents the following information for November, 2018: Budgeted production of product P = 200 units. Standard consumption of Raw materials = 2 kg. per unit of P. Standard price of material A = 6 per kg. Actually, 250 units of P were produced and material A was purchased at 8 per kg and consumed at 1.8 kg per unit of P. Calculate the Material Cost Variances.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
KM Ltd. presents the following information for November, 2018:
Budgeted production of product P = 200 units.
Standard consumption of Raw materials = 2 kg. per unit of P.
Standard price of material A = 6 per kg.
Actually, 250 units of P were produced and material A was purchased at 8 per kg and consumed at 1.8 kg per unit of P. Calculate the Material Cost Variances.
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