Tabula Ltd manufactures a range of writing desks. One type, the Office Standard, has a standard cost of £95 made up as follows:

The standard selling price of the desk is £120. The monthly budget projects production and sales of 1,000 units. Actual figures for the month of April are as follows:
Sales 1,200 units at £122
Production 1,400 units
Direct materials 22,000 m2 at £4 per m²
Direct wages 6,800 hours at £11
Variable overheads £11,000
Fixed overheads £6,000
For the above figures, produce:
(a) A trading account reconciling actual and budgeted profit and
showing all the appropriate variances;
(b) Ledger accounts in respect of the above transactions.

Transcribed Image Text:

Direct materials (10 m² at £3 per m²) Direct labour (five hours at £10 per hour) Variable overheads (five hours at £2 per hour) Fixed overheads (five hours at £1 per hour) (£) 4 30 50 10 5 95