Chronicle Ltd produces stationery and journals. One of their products is the Daily Planner. The company's...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Chronicle Ltd produces stationery and journals. One of their products is the Daily Planner. The company's operating budget for the month of September 20X2 included the following data for one Daily Planner: Selling price: Direct materials: Paper Plastic £7.50 per unit 125 pages @ £0.005 per page 0.075 kg @ £6 per kg 0.25 hours @ £8 per hour 0.15 hours @ £9 per hour 5,000 units Production and sales Fixed costs £2,000 The actual number of units produced and sold in September was 4,800 and the following actual cost data is available: Direct labour: Sales Direct materials: Direct labour Compilers Finishers Paper (125 pages per unit) Plastic (0.09 kg per unit) Compilers (£7.80 per hour) Finishers (£9.10 per hour) £ 35,760 (3,600) (2,808) (7.488) (5,897) (2.100) 13.867 Fixed costs Net profit The senior manager is happy that actual net profit is higher than budgeted net profit, but would like to understand the reasons behind this increase and has asked the manager of the Daily Planner department to explain her results. Requirements 2.1) Prepare a flexible budget for September 20X2. (no word count) (15 marks) 2.2) Prepare a reconciliation of budgeted profit and actual profit, calculating all relevant price, cost and efficiency variances. (no word count) (20 marks) 2.3) Using your calculations from (2.2) identify and explain three actions that could be taken in order to further improve the performance of the Daily Planner department. (maximum 300 words) (15 marks) Chronicle Ltd produces stationery and journals. One of their products is the Daily Planner. The company's operating budget for the month of September 20X2 included the following data for one Daily Planner: Selling price: Direct materials: Paper Plastic £7.50 per unit 125 pages @ £0.005 per page 0.075 kg @ £6 per kg 0.25 hours @ £8 per hour 0.15 hours @ £9 per hour 5,000 units Production and sales Fixed costs £2,000 The actual number of units produced and sold in September was 4,800 and the following actual cost data is available: Direct labour: Sales Direct materials: Direct labour Compilers Finishers Paper (125 pages per unit) Plastic (0.09 kg per unit) Compilers (£7.80 per hour) Finishers (£9.10 per hour) £ 35,760 (3,600) (2,808) (7.488) (5,897) (2.100) 13.867 Fixed costs Net profit The senior manager is happy that actual net profit is higher than budgeted net profit, but would like to understand the reasons behind this increase and has asked the manager of the Daily Planner department to explain her results. Requirements 2.1) Prepare a flexible budget for September 20X2. (no word count) (15 marks) 2.2) Prepare a reconciliation of budgeted profit and actual profit, calculating all relevant price, cost and efficiency variances. (no word count) (20 marks) 2.3) Using your calculations from (2.2) identify and explain three actions that could be taken in order to further improve the performance of the Daily Planner department. (maximum 300 words) (15 marks)
Expert Answer:
Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
Posted Date:
Students also viewed these accounting questions
-
CORPORATE EQUITY TRANSACTIONS 1. Issued 5,000 shares of no-par common stock. The market price of the stock is $12 per share. 2. Issued 2,000 shares of 5%, $100 par, cumulative preferred stock for...
-
Anders had 4,000 shares of common stock issued and outstanding. The market price of common stock at year end was $15.00 per share. Dividends paid in 2015 were $0.60 per share. Calculate the Current...
-
Delta Corporation earned $2.50 per share during fiscal year 2008 and paid cash dividends of $1.00 per share. During the fiscal year that just ended on December 31, 2009, Delta earned $3.00 per share,...
-
Two different types of tips can be used in a Rockwell hardness tester. Eight coupons from test ingots of a nickel based alloy are selected, and each coupon is tested twice, once with each tip. The...
-
Jupiter Media used a survey to determine how people use their free time. Watching television was the most popular activity selected by both men and women (The Wall Street Journal, January 26, 2004)....
-
The shaper mechanism is designed to give a slow cutting stroke and a quick return to a blade attached to the slider at C. Determine the velocity of the slider block C at the instant shown, if link AB...
-
Adaris Group, headquartered in the UK, owns a 70 percent interest in Adaris Malaysia. The acquisition cost was 200 million. At the date of acquisition, 1 January 2012, Adaris Malaysia's book value...
-
Suzaki Manufacturing Company is considering three new projects, each requiring an equipment investment of $22,000. Each project will last for 3 years and produce the following cash inflows. The...
-
Help please Alpha Company purchased a $1,000, 5 years, 5% bond on July 1, 2015 for $950. Interest is paid semi- annually on June 30. The straight line method of amortization is used for both premiums...
-
The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...
-
Analyse how DHLs logistics and supply chain was affected by brexit and shortage of HDV driver and how their supply chain became more resilient towards this using data analytics and robotics
-
With respect to the registered pension plan, the Company also made a $1,400 contribution on behalf of Ms. Marsh. In addition to the preceding, Ms. Marsh made the following payments during the year:...
-
In the graph for the linear equation S = 15 - 5T, with T on the horizontal axis, the vertical intercept of the graph is -5.
-
Sweetness Processing Company, a VAT-registered taxpayer, is a processor of refined sugar. In June 2021, the records of the company revealed the following: Sales during the month, exclusive of VAT...
-
You are the head of the cybersecurity team at a large corporation. You notice an increase in network traffic that appears to be legitimate but is causing a slowdown in your systems. Upon further...
-
and Exponent... HW2: Exponent expression your answer. (6xy-3)-3 x-7 y completely, a
-
t # 12 Enhancing qualitative characteristics of accounting information do NOT include: A. materiality. B. timeliness. C. comparabilify. D. verifiability. 2 answers
-
Show that, given a maximum flow in a network with m edges, a minimum cut of N can be computed in O(m) time.
-
Wilkes, Inc. must invest in a pollution-control program in order to meet federal regulations to stay in business. There are two programs available to Wilkes: an all-at-once program that will be...
-
Assume it is now January 1, 2012, and you are examining two unlevered firms that operate in the same industry that have identical assets worth $80 million that yield a net profit of 12.5% per year,...
-
What is the dominant source of capital funding in the United States? Given this result and the fact that most corporations are net borrowers, what decisions must most managers face in order to...
-
What are some typical consumer complaints?
-
What are five methods of resolving consumer complaints?
-
Marta loves shopping for holiday gifts for her friends and family. This year she started looking for gifts early, in June. She hopes that the extra time will allow her to find the perfect gift for...
Study smarter with the SolutionInn App