USE THE INFORMATION PROVIDED BELOW TO PREPARE THE PERFORMANCE REPORT FOR LONMIN LIMITEDLONMIN LTD MANUFACTURES A SINGLE PRODUCT. IT ORIGINALLY PLANNED AND SELL 18 000 UNITS DURING THE YEAR BUT THE ACTUAL ACTIVITY LEVEL WAS 22 000 UNITS.THE BUDGETED AND ACTUAL INCOME AND COST FOR THE YEAR AS FOLLWS orginal budgetactual resultvolume 18 000 units22 000 units R RSALES 2 520 0003 300 000COST OF SALES (1 670 000)2 132 000DIRECT MATERILS 720 000924 000DIRECT LABOUR 450 000594 000VARIABLE OVERHEADS 180 000264 000FIXED OVERHEADS 320 000GROSS PROFIT 850 000350 0001 168 000

Performance report in business shows comparison of standard cost at actual output and actual costs.…

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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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Use this information for Harry Company to answer the question that follow.The following data are given for Harry Company: Budgeted production 26,000 units Actual production 27,500 units Materials: Standard price per ounce $6.50 Standard ounces per completed unit 8 Actual ounces purchased and used in production 228,000 Actual price paid for materials $1,504,800 Labor: Standard hourly labor rate $22.00 per hour Standard hours allowed per completed unit 6.6 Actual labor hours worked 183,000 Actual total labor costs $4,020,000 Overhead: Actual and budgeted fixed overhead $1,029,600 Standard variable overhead rate $24.50 per standard labor hour Actual variable overhead costs $4,520,000 Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.)The direct labor rate variance is a.$5,490 favorable b.$5,490 unfavorable c.$33,000 unfavorable d.$33,000 favorable
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The following has been extracted from the financial records of ATF Limited: Annual budgeted capacity of the plant 40,000 units Production during the year 35,000 units Opening finished goods stock 3,000 units Closing finished goods stock 1,500 units Fixed production overheads for the year K 1,000,000 Fixed selling overheads for the year K 200,000 Selling price per unit K 200 Direct material cost per unit K 70 Direct labour cost per unit K 35 Variable production…
REQUIRED Use the information provided below to prepare the Performance report indicating original budget, actual budget, flexible budget and variances.
The following data have been extracted from the budgets of Kelvin Ltd,a company that manufacture and sells a single product $per unit Selling price Direct material cost Direct wages Variable overhead Fixed overhead 45 10 4 2.50 1.50 Fixed production overhead costs are budgeted at $400,000 per annum. Normal production levels are expected to be 200,000 units per annum. Actual Fixed Production overheads are $120,000 Budgeted administration costs are $120,000 per annum. The following pattern of sales and production is expected during 2003: Sales (units) Production (units) 60,000 70,000 You are required a. To prepare budgeted profit statements for the year using (i) (ii) Marginal Costing Absorption Costing b. To reconcile the profits for the year
Budgeted information for X Ltd for the following period, analyzed by product, is shown below: Product A Product B Product C Selling price per unit $11 $10.5 $8 Variable costs per unit $5.8 $6 $5.2 Attributable fixed costs $275000 $337000 $296000 Sales Units for Product A is 444000, for Product B is 666000 and for product C 355200 General fixed costs, which are apportioned to products as a percentage sales are budgeted at $1668000. Required: (Recalculate the budgeted profit of X Ltd. On the assumption that product C is discontinued, with no effect on sales of the other two products. State and justify other…
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
Two businesses, p td. And q Itd. Sell the same type of product in the same type of market. Their budgeted profit and loss accounts for the coming year are as under: Q Ltd. P Ltd. Sales 1,50,000 1,50,000 Less: Variable Costs 1,20,000 1,00,000 Fixed Costs 15,000 1,35,000 35,000 1,35,000 Budget Net Profit 15,000 15,000 You are required to: Calculate the break-even point for each business Calculate the sales volume at which each business will earn rs.5,000 Profit. State which business is likely to earn greater profit in conditions of 1. Heavy demand for the product 2. Low demand for the product, and, briefly give your argument also.
Matolo ltd manufactures two types of products BELL and CELL.The following budgeted information is available PRODUCT BELL CELL Budgeted Production and Sales in Units 550 550 Labour hours per unit 100 100 Variable cost per unit K15,000 K16,000 Total budgeted labour hours 110,000 240,000 The company has general fixed overheads amounting to K13,010,000 which is absorbed using labour hour rate. The analysis of the K13,010,000 general fixed overheads revealed the following: Overhead item K’000 Setup costs 6,000 Inspection 3,510 Labour costs…
Rooney Company produces two products. Budgeted annual income statements for the two products are provided as follows. Power Lite Total Budgeted Per Budgeted Budgeted Per Budgeted Budgeted Budgeted Number Unit Amount Number Unit Amount Number Amount @ $ 700 @ 380 $ 319,200 (168,000) 151,200 $ 487,200 (259,200) 228,000 (114,000) $ 114,000 Sales 240 $168,000 560 @ $ 570 800 Variable cost (91,200) 76,800 |(19,000) $ 57,800 240 560 @ 300 = 800 %3D Contribution margin 240 320 560 @ 270 800 Fixed cost (95,000) Net income $ 56,200 Required: a. Based on budgeted sales, determine the relative sales mix between the two products. b. Determine the weighted-average contribution margin per unit. c. Calculate the break-even point in total number of units. d. Determine the number of units of each product e. Verify the break-even point by preparing an income statement for each product as well as an income statement for the combined products. f. Determine the margin of safety based on the combined sales…
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orginal budget	actual result
volume 18 000 units	22 000 units
R	R
SALES 2 520 000	3 300 000
COST OF SALES (1 670 000)	2 132 000
DIRECT MATERILS 720 000	924 000
DIRECT LABOUR 450 000	594 000
VARIABLE OVERHEADS 180 000	264 000
FIXED OVERHEADS 320 000 GROSS PROFIT 850 000	350 000 1 168 000