Required: Calculate all variances and prepare an operating statement for the month ended June 2015 by using the following table format.
Required:
Calculate all variances and prepare an operating statement for the month ended
June 2015 by using the following table format.
Sales variances |
£ |
Favourable (F)/Adverse (A) |
Sales price variance: |
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Sales volume variance: |
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Total sales variance |
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Direct material variances |
£ |
Favourable (F)/Adverse (A) |
Material price variance: |
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Material usage variance: |
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Total direct material variance |
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Direct labour variances |
£ |
Favourable (F)/ Adverse (A) |
Labour rate variance: |
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Labour efficiency variance: |
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Total direct labour variance |
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Variable |
£ |
Favourable (F)/ Adverse (A) |
Variable overhead rate variance: |
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Variable overhead efficiency variance: |
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Total Variable overhead variance |
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Variable overhead variances |
£ |
Favourable (F)/ Adverse (A) |
Variable overhead rate variance: |
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Variable overhead efficiency variance: |
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Total Variable overhead variance |
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Direct labour variances |
£ |
Favourable (F)/ Adverse (A) |
Labour rate variance: |
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Labour efficiency variance: |
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Total direct labour variance |
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Direct material variances |
£ |
Favourable (F)/Adverse (A) |
Material price variance: |
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Material usage variance: |
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Total direct material variance |
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Step by step
Solved in 4 steps