FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The labour efficiency variance for July is:
(a)
(b)
(c)
(d) £5,400 F
£375 F
£375 A
£5,400 A
The Labour rate Variance for July is:
(a) £6,000 A
(b)
£5,775 F
(c)
£5,775 A
(d) £6,000 F
Notts Ltd's cost of sales on its statement of profit or loss for the ended 31
December 2020 is £105,066. Its inventory at 31 Dec 2019 is £6,430 and at 31
Dec 2020 is £5,757. Its trade payables at 31 December 2019 is £9,204 and at
31 December 2020 is £8,580.
6.
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Transcribed Image Text:The labour efficiency variance for July is: (a) (b) (c) (d) £5,400 F £375 F £375 A £5,400 A The Labour rate Variance for July is: (a) £6,000 A (b) £5,775 F (c) £5,775 A (d) £6,000 F Notts Ltd's cost of sales on its statement of profit or loss for the ended 31 December 2020 is £105,066. Its inventory at 31 Dec 2019 is £6,430 and at 31 Dec 2020 is £5,757. Its trade payables at 31 December 2019 is £9,204 and at 31 December 2020 is £8,580. 6.
Moon Phase Ltd are a company manufacturing sails for Scorpion sail boats. The
company expects production and sales in July 2021 to be 2,000 sails.
The budget for these 2,000 sails is detailed below with materials and labour being
variable costs and overheads being a mixed cost.
Materials
150,000
96,000
65,000
Labour
Overhead
Each sail is expected to use 7.5 square metres of fabric and 4 hours of labour.
The overhead for August, which is based on production and sales of 1,500 units, is
£55,000.
In July 3,000 units are produced. 22,000 square metres of material are used at a cost
of £231,000 and 11,550 hours of labour are used at a cost of £12.50 per hour
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Transcribed Image Text:Moon Phase Ltd are a company manufacturing sails for Scorpion sail boats. The company expects production and sales in July 2021 to be 2,000 sails. The budget for these 2,000 sails is detailed below with materials and labour being variable costs and overheads being a mixed cost. Materials 150,000 96,000 65,000 Labour Overhead Each sail is expected to use 7.5 square metres of fabric and 4 hours of labour. The overhead for August, which is based on production and sales of 1,500 units, is £55,000. In July 3,000 units are produced. 22,000 square metres of material are used at a cost of £231,000 and 11,550 hours of labour are used at a cost of £12.50 per hour
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