Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

42.50 The Naturalista is a manufacturing company specializing in online sales of natural hair beauty and styling products. The company sells 2 types of head

image text in transcribed
image text in transcribed
42.50 The Naturalista is a manufacturing company specializing in online sales of natural hair beauty and styling products. The company sells 2 types of head wraps. - The Basic and The Electric in a standard sales mix of 1:3. The company sells The Basic wrap for NS204, while The Electric is sold for N$260 per wrap. Both wraps are made using 2 types of fabric - Satin and Silk. The following standard unit costs apply for the year ended June 30th, 2020: The Basic Wrap The Electric Wrap Satin (N$25/meter) 37.50 50.00 Silk (N$17/meter) 30.60 Direct Labour 20.00 32.00 Variable manufacturing overheads - based on production output 15.90 25.50 Fixed manufacturing overheads are budgeted at 904,800 per month, based on productive direct labour hours. The factory has a total capacity to accommodate 55 factory workers, working 8,700 productive hours every month In the month of March 2020, actual sales were made up 5,000 units of the basic wrap, sold for N$200 each and 20,000 units of the Electric wrap at NS265 per unit. The Naturalista required 9,000 meters of Satin and 10,000 meters of Silk to make to make The Basic Wrap. The Electric Wrap required 44,000 meters of the Satin and 52,000 meters of the Silk The Naturalista usually allow a 10% idle time in their budget, however actual idle time in March was only 360 hours of the 9,000 actual hours paid for at N$84.00 per hour. 1.296 productive hours were used to make The Basic wrap. Actual variable overheads for the month cost N$13.90 per hour for The Basic Wrap and N$26.00 for the Electric Wrap. Please note: 1. The Naturalista uses absorption costing to value inventory, based on a JIT system for both purchases and production 2. It takes 15 minutes and 24 minutes to make 1 unit of The Basic and Electric wraps, respectively, III 1. The Naturalista uses absorption costing to value inventory, based on a JIT system for both purchases and production 2. It takes 15 minutes and 24 minutes to make 1 unit of The Basic and Electric wraps, respectively. The company is struggling to retain accounting staff and their intern compiled the following incomplete reconciliation of variances Budgeted Profit Based on 24,000 budgeted sales units 1,675,200 Add/Less: Unknown Variances Standard Profit 1,738,000 Add/less: Total Material Price Variance 35000A Satin 159,000A ? 124.000F Silk Penuired Calculate the standard profit per unit of The Basic Wrap

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Measuring Business Interruption Losses And Other Commercial Damages An Economic Approach

Authors: Patrick A. Gaughan

3rd Edition

1119647916, 9781119647911

More Books

Students also viewed these Accounting questions

Question

=+ What are the undesirable consequences?

Answered: 1 week ago

Question

Compare wages in Romania to wages in your home country.

Answered: 1 week ago

Question

Which were the causes of high employee turnover at Fomco Group?

Answered: 1 week ago