BUDGETARY CONTROL QUESTION The following data were obtained from the management accountant of Chingola Business Solutions,...

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BUDGETARY CONTROL QUESTION The following data were obtained from the management accountant of Chingola Business Solutions, (CBS), the manufacturers of well-known local brand for month 9: Budget 1,000 units Actual 900 units Varince 100 A K'000 K'000 K'000 Sales 120.00 116.00 4 A Costs: Production Direct materials 30.00 31.50 1.5 Direct labour 35.00 34.00 1 Variable overheads 5.00 5.50 Fixed overheads 15.00 14.00 1 1442 85.00 85.00 0 Other costs Administration 10.00 8.50 1.5 TI F Selling and distribution Variable 2.50 3.30 0.8 Fixed 4.00 4.50 OS General (fixed) Subtotal 1.50 1.20 0.3 18.00 17.50 OS F Total costs 103.00 102.50 OS F Net profit 17.00 13.50 8.5 A Required (a) Prepare variances using the above data and comment on their suitability for assessing the performance of the manager for month 9 (b) Suggest an alternative set of variances, if any, and prepare them in a more useful format for managerial purposes BUDGETARY CONTROL QUESTION The following data were obtained from the management accountant of Chingola Business Solutions, (CBS), the manufacturers of well-known local brand for month 9: Budget 1,000 units Actual 900 units Varince 100 A K'000 K'000 K'000 Sales 120.00 116.00 4 A Costs: Production Direct materials 30.00 31.50 1.5 Direct labour 35.00 34.00 1 Variable overheads 5.00 5.50 Fixed overheads 15.00 14.00 1 1442 85.00 85.00 0 Other costs Administration 10.00 8.50 1.5 TI F Selling and distribution Variable 2.50 3.30 0.8 Fixed 4.00 4.50 OS General (fixed) Subtotal 1.50 1.20 0.3 18.00 17.50 OS F Total costs 103.00 102.50 OS F Net profit 17.00 13.50 8.5 A Required (a) Prepare variances using the above data and comment on their suitability for assessing the performance of the manager for month 9 (b) Suggest an alternative set of variances, if any, and prepare them in a more useful format for managerial purposes