The assistant management accountant of your company has been preparing the profit and loss statement for the week ended 31 October. Unfortunately, he has had a traffic accident and is now in hospital, so as senior cost analyst you have been asked to complete this statement. The uncompleted statement and relevant data are shown below:

Standard data:
The standard price of direct material used is £600 per tonne. From each tonne of material it is expected that 2400 units will be produced.
A forty-hour week is operated.
Standard labour rate per hour is £4.
There are 60 employees working as direct labour.

The standard performance is that each employee should produce one unit of product in three minutes.

There are four working weeks in October.

The budgeted fixed overhead for October is £76,800.

Actual data:

Materials issued during the week were 20 tonnes @ £620 per tonne.

During the week four employees were paid @ £4.20 per hour and six were paid @ £3.80 per hour. Remainder were paid at standard rate.

Overhead incurred was £18,000.

You are required to complete the profit and loss statement for the week ended 31 October.

Transcribed Image Text:

Week ended 31 October Standard cost: direct materials Sales 3 50,000 direct wages overhead Standard profit Variances Fav/(Adv) Fav/(Adv) Direct materials: price (400) usage (300) total (700)