please calculate absoptional and marginal income statemnmts for the firmfrom the listed image files UCK Furmiture produce one product – desks.Each desk is budgeted to require 4 kg of wood at £3 per kg, 4 hours of labour at £2 per hour, andvariable production overheads of £5 per unit.Fixed production overheads are budgeted at £20,000 per month and average production is estimatedto be 10,000 units per month.The selling price is fixed at £35 per unit. There is also a variable selling cost of £1 per unit and fixedselling cost of £2,000 per month.During the first two months X plc expects the following levels of activity:JanuaryFebruaryProduction11,000 units 9,500 unitsSales9,000 units 11,500 units(a) Prepare a cost card using absorption costing and marginal costing. (a) The UCK Fumiture has noticed considerable fluctuation in time spent and expenses paid toelectrician who is on standby for a fixed price plus some extra payment depending upon the urgencyand frequency when he is called.MonthHours spentExpenses (£)January6307960February5057410March7058285AprilМay55575357809110June8009840Using the high-low method, accurately calculate the fixed cost and variable cost and estimate theexpenses if the number of hours required for July and August is 650 and 750 respectively.(b) From the following given data apply the inventory valuation technique.UCK reports the following transactions for 2019:DatePurchasesPurchase CostMay 15100 units£1,000Aug 18200 units2,200Sep 19130 units1,800430 units£5,000

Variable cost is the cost which changes with the change in the output level. For example, direct…

Each desk is budgeted to require 4 kg of wood at £3 per kg, 4 hours of labour at £2 per hour, and variable production overheads of £5 per unit. Fixed production overheads are budgeted at £20,000 per month and average production is estimated to be 10,000 units per month. The selling price is fixed at £35 per unit. There is also a variable selling cost of £1 per unit and fixed selling cost of £2,000 per month. During the first two months X plc expects the following levels of activity: January February Production 11,000 units 9,500 units Sales 9,000 units 11,500 units (a) Prepare a cost card using absorption costing and marginal costing.

Each desk is budgeted to require 4 kg of wood at £3 per kg, 4 hours of labour at £2 per hour, and variable production overheads of £5 per unit. Fixed production overheads are budgeted at £20,000 per month and average production is estimated to be 10,000 units per month. The selling price is fixed at £35 per unit. There is also a variable selling cost of £1 per unit and fixed selling cost of £2,000 per month. During the first two months X plc expects the following levels of activity: January February Production 11,000 units 9,500 units Sales 9,000 units 11,500 units (a) Prepare a cost card using absorption costing and marginal costing.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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