Desmond Desmond makes a single product for which the standard cost card is as follows:     £ Materials 5 kg at £1.20 per kg 6.00 Labour 3 hours at £3 per hour 9.00 Variable overhead 3 hours at £2.80 per hour 8.40     23.40 Contribution   16.60 Selling price   40.00   Budgeted sales were 10,000 but production was budgeted at 11,000 to build up inventory from the opening 500 units. Fixed overheads were budgeted at £14,000. Actual results were as follows: 11,500 items were produced and 11,000 sold for total revenue of £430,000 58,000 kg were bought and used at a total cost of £69,000 35,000 hours were worked at a cost of £110,000 Variable overhead was £97,000 and fixed overhead was £14,500   Produce an operating statement for the period which reconciles the budgeted and actual profit under a marginal costing system.

Pendennis plc had the following budget and actual figures for Product ZN6 during April: Output Sales revenue Raw materials Labour Fixed overheads Profit Budget A. £12,500 favourable B. £13,000 adverse C. £13,000 favourable D. £12,500 adverse 2,200 units £ 205,000 (98,800) 28,000 metres (65,000) 13,000 hours (21,400) 19,800 What is the direct labour rate variance for Product ZN6 for the month of April? Actual £ 176,000 (77,000) 22,000 metres (66,000) 11,000 hours (24,200) 8,800 2,500 units

Great Outdoze Company manufactures sleeping bags, which sell for $66.30 each. The variable costs of production are as follows:          Direct material $ 19.20   Direct labor   10.50   Variable manufacturing overhead   8.10     Budgeted fixed overhead in 20x1 was $140,700 and budgeted production was 21,000 sleeping bags. The year’s actual production was 21,000 units, of which 17,700 were sold. Variable selling and administrative costs were $1.40 per unit sold; fixed selling and administrative costs were $29,000. Required:1. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing.2-a. Prepare an operating income statement for the year using absorption costing.2-b. Prepare an operating income statement for the year using variable costing.3. Reconcile reported operating income under the two methods using the shortcut method.

Tharaldson Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 7.1 ounces 0.2 hours 0.2 hours Standard Price or Rate Standard Cost Per Unit $ 28.40 $ 4.00 per ounce $ 11.00 per hour $ 2.20 $ 4.00 per hour $ 0.80 The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production 2,500 units 3,000 units 21,500 ounces Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 22,500 ounces 560 hours $ 45,100 $ 12,500 $ 3,250 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for June is: Multiple Choice $306 F $6.340 U $306 U $6,340 F

Covine Ltd is a company that makes three products and the variable costs are as follows;                                                              A                    B                    C                                                             £                      £                      £          Direct materials                                12                   13                   15 Direct labour (£12 per hour)          24                   36                   36 Variable overhead                           1                      2                      2                                                             37                   51                   53   The sale price of A is £42, B is £57 and C is £56. During the month of June the availability of Direct Labour is limited to 12,000 hours due to staff taking holidays. Sales demand is expected to be 3000 units of A, 3000 units of B and 2000 of C. Monthly fixed costs are £20,000 and opening stocks are zero.…

A company makes a product with the following standard costs: Standard Quantity or Hours Standard Cost Per Standard Price or Rate Unit Direct materials 7.6 ounces $4.00 per ounce $30.40 $5.00 $ 4.50 Direct labor 0.5 hours $ 10.00 per hour Variable overhead 0.5 hours $ 9.00 per hour The company reported the following results concerning this product In June. Originally budgeted output Actual output Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost 3,000 units 3,100 units 16,300 ounces 17,400 ounces 510 hours $ 45,000 $ 13,000 $3,500 The company applles varlable overhead on the basls of direct labor-hours. The labor rate varlance for June Is: - ఆడిం Multiple Choice $7.900 F $7,900 U $1,337 U

Covine Ltd is a company that makes three products and the variable costs are as follows;                                                              A                    B                    C                                                             £                      £                      £          Direct materials                                12                   13                   15 Direct labour (£12 per hour)          24                   36                   36 Variable overhead                           1                      2                      2                                                             37                   51                   53   The sale price of A is £42, B is £57 and C is £56. During the month of June the availability of Direct Labour is limited to 12,000 hours due to staff taking holidays. Sales demand is expected to be 3000 units of A, 3000 units of B and 2000 of C. Monthly fixed costs are £20,000 and opening stocks are zero.…

Tharaldson Corporation makes a product with the following standard costs: Standard Standard Quantity or Hours Standard Price or Cost Per Rate Unit Direct materials $ 4.00 per ounce $ 11.00 per hour $ 4.00 per hour 7.1 ounces $28.40 Direct labor $ 3.30 $ 1.20 0.3 hours Variable overhead e.3 hours The company reported the following results concerning this product in June. Originally budgeted output Actual output Raw materials used in production 2,500 units 3,000 units 21,500 ounces Purchases of raw materials 22,000 ounces 560 hours Actual direct labor-hours Actual cost of raw materials purchases $ 45,100 $ 12,500 $ 3,250 Actual direct labor cost Actual variable overhead cost The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases varlance is computed when the materials are purchase The labor efficiency varlance for June is:

Handerson Corporation makes a product with the following standard costs: Standard Quantity Standard Price or or Hours 8.5 kilos Rate Direct materials $46.00 r kilo $ 20.00 per hour $ 6.00 per hour Direct labor 0.4 hours Variable overhead 0.4 hours The company reported the following results concerning this product in August. Actual output 3,200 units 29,030 kilos 31,600 kilos 1,160 hours $ 195,920 $ 22,736 $ 7,540 Raw materials used in production Purchases of raw materials Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is cor purchased. The labor efficiency variance for August is:

as Great Outdoze Company manufactures sleeping bags, which sell for $67.00 each. The variable costs of production are as follows: $18.20 9.10 7.00 Direct material Direct labor Variable manufacturing overhead Budgeted fixed overhead in 20x1 was $160,000 and budgeted production was 20,000 sleeping bags. The year's actual production was 20,000 units, of which 16,700 were sold. Variable selling and administrative costs were $1.90 per unit sold; fixed selling and administrative costs were $25,000. Required: 1. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing. 2-a. Prepare an operating income statement for the year using absorption costing. 2-b. Prepare an operating income statement for the year using variable costing. 3. Reconcile reported operating income under the two methods using the shortcut method.