The following are the budgeted and actual income statements for Baxter Ltd for the month of July:

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Produce a reconciliation of the budgeted and actual operating profit, going into as much detail as possible with the variance analysis.

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Accounting An Introduction

ISBN: 9780273733201

5th Edition

Authors: Eddie McLaney, Dr Peter Atrill, Eddie J. Mclan

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Question Posted: May 14, 2024 09:02 AM

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The following are the budgeted and actual income statements for Baxter Ltd for the month of July:

Question:

Output (production and sales) Sales revenue Budget 1,000 units 100,000 (40,000) (40,000 metres) (20,000) (2,500 hours) Raw materials Labour Fixed overheads (20,000) Operating profit 20,000 Actual 1,050 units 104,300 (41,200) (40,500 metres) (21,300) (2,600 hours) (19,400) 22,400

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Accounting An Introduction

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