New Motion Ltd. manufactures a single product which has selling price is £ 120 per unit. The monthly budget units are 1000 units. £ Direct material 20 units @ £3 per un labour 3 hours @ £5 per hour 15 Variable overheads 5 hours @ £2 per hour 10 Fixed overheads 5 hours @ £1 per hour 590 Actual figures for the month of September are Production 1, 200 units Direct material 23,000 units @ £ 4 per unit Direct Wages 3,500 hours @ £ 5.2 Variable overheads € 11,000 Fixed overheads £ 6,000 Required: Calo material, labour and overhead variances for the month of September and prepare summary of variances report with explanation referred to responsibility persons for the III. Sun Flower Hotel in Washington prepare the Budget for the first quarter of 2018. Data concerning the company's operations in August appear below: Budget Actual Budget Results for Rooms Rent. $ 60,000 $ 74,000 Variable Expenses: Wa salaries 300 350 Revenue ($ 200) 18,000 19,400 Facility Supports 6,000 6,800 Power expenses 3,000 4,000 Fixed Expenses: Depreciation on Facilities Depreciation on Building. 12,000 13,000 Total expense... 4,500 4, 500 C 43,500 47,700 Net operating income

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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New Motion Ltd. manufactures a single product which has selling price is £ 120 per unit. The monthly budget units are 1000 units. £ Direct material 20 units @ £3 per unit 60 Direct
labour 3 hours @ £5 per hour 15 Variable overheads 5 hours @ £2 per hour 10 Fixed overheads 5 hours @ £1 per hour 5 90 Actual figures for the month of September are as follows:
Production 1, 200 units Direct material 23,000 units @ £ 4 per unit Direct Wages 3, 500 hours @ £ 5.2 Variable overheads £ 11, 000 Fixed overheads £6,000 Required: Calculate the
material, labour and overhead variances for the month of September and prepare summary of variances report with explanation referred to responsibility persons for the variances.
III. Sun Flower Hotel in Washington prepare the Budget for the first quarter of 2018. Data concerning the company's operations in August appear below: Budget Actual Budget
Budget Results for Rooms Rent
$ 60,000 $ 74,000 Variable Expenses: Wages and
300 350 Revenue ($ 200).
salaries
6,000 6,800 Power
expenses
18,000 19,400 Facility Supports
3,000 4,000 Fixed Expenses: Depreciation on Facilities Depreciation on Building
12,000 13,000 Total expense
43,500 47,700 Net operating income
$ 16,500 $ 26,300 Required: 1. Prepare a flexible budget and performance report for first quarter of 2018 2. Which of the variances
should be of concern to management? Explain.
4,500 4, 500 Office
Transcribed Image Text:New Motion Ltd. manufactures a single product which has selling price is £ 120 per unit. The monthly budget units are 1000 units. £ Direct material 20 units @ £3 per unit 60 Direct labour 3 hours @ £5 per hour 15 Variable overheads 5 hours @ £2 per hour 10 Fixed overheads 5 hours @ £1 per hour 5 90 Actual figures for the month of September are as follows: Production 1, 200 units Direct material 23,000 units @ £ 4 per unit Direct Wages 3, 500 hours @ £ 5.2 Variable overheads £ 11, 000 Fixed overheads £6,000 Required: Calculate the material, labour and overhead variances for the month of September and prepare summary of variances report with explanation referred to responsibility persons for the variances. III. Sun Flower Hotel in Washington prepare the Budget for the first quarter of 2018. Data concerning the company's operations in August appear below: Budget Actual Budget Budget Results for Rooms Rent $ 60,000 $ 74,000 Variable Expenses: Wages and 300 350 Revenue ($ 200). salaries 6,000 6,800 Power expenses 18,000 19,400 Facility Supports 3,000 4,000 Fixed Expenses: Depreciation on Facilities Depreciation on Building 12,000 13,000 Total expense 43,500 47,700 Net operating income $ 16,500 $ 26,300 Required: 1. Prepare a flexible budget and performance report for first quarter of 2018 2. Which of the variances should be of concern to management? Explain. 4,500 4, 500 Office
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