LEvnement du Dimanche budgets to produce 300,000 copies of its monthly newspaper for August 2018. It is

L’Evénement du Dimanche budgets to produce 300,000 copies of its monthly newspaper for August 2018. It is budgeted to run 1,5000,000 print pages in August with 50 print pages per newspaper. Actual production in August 2018 was 320,000 copies with 17 280,000 print pages run. Each paper was only 50 print pages, but quality problems with paper led to many pages being unusable. 

Variable costs comprise direct materials, direct labour, and variable indirect costs. Variable and fixed indirect costs are allocated to each copy on the basis of print pages. The driver for all variable costs is the number of print pages. Data pertaining to August 2018 are: 

L’Evénement du Dimanche sells for SFr 0.50 per copy in 2018. No change from this budgeted price of SFr 0.50 per copy occurred in August 2018. The actual direct labour rate in August 2018 was SFr 29.00 per hour. Actual and budgeted pages produced per direct labour-hour in August 2018 were 10,000 print pages. Copies produced but not sold have no value. Advertising revenue covers payments from all advertising sources. 

Required 

1. Present a static-budget variance (Level 1) report for L’Evénement du Dimanche. 

2. Comment on the results in requirement 1.

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Budgeted Actual Direct materials SFr 180 000 SFr 224 640 Direct labour costs Variable indirect costs Fixed indirect costs 45 000 50 112 60 000 63 936 90 000 97 000 Data pertaining to revenues for L'Evénement du Dimanche in August 2018 are: Budgeted Actual Circulation revenue Advertising revenue SFr 140 000 SFr 154 000 360 000 394 600