8 Budget data Sales: Quantities Selling price () Notebooks 100 000 8 Raw materials: Forecast quantities (grams) Purchasing cost (C/kg) Paper (RM) 100 Manufacturing a notebook requires two steps: cutting and broaching. The budgeted manufacturing costs are as follows: Cutting Broaching 5 minutesotebook 10 minutesotebook 6 per hour 5 per hour Labour costs are fixed and amount to 200 000 . Overhead costs amount to 120 000 . Actual data: Super Co. actually sold 105 000 notebooks at 7.8 /unit. And it bought 11 000 kg of paper for a total cost of 85 050 . The real cost of manufacturing was as follows: Cutting Broaching 6 minutesotebook 9 minutesotebook 7 per hour 6 per hour Actual labour costs have amounted to 207 800 , and overhead costs have actually cost 124 300 C On the basis of these figures, Super's CEO asked the Controller to provide an update on the company's situation. The Controller built up the following table: C ybabeb Vabbe Retum var. Varaph Price var. Vasara Total variance TO 840 000,00 -21 000,00 819 000,00 Volume var. 40 000,00 4.000,00 2 500,00 800 000,00 80 000,00 SO 000,00 840 000,00 88 000,00 RM 85 050,00 84 000,00 52 500,00 0,00 4000,00 10 500,00 750,00 63 000,00 2950,00 10 500,00 15 750,00 73 500,00 83 333,33 4166,67 87 500,00 78 750,00 94 500,00 cutting Broaching Labour Overhead 19 000,00 S050,00 23 500,00 11 166,67 7 800,00 4 300,00 32 816,67 0,00 0,00 700,00 207 800,00 200 000,00 120 000,00 266 666,621 0.00 200 000,00 120 000,00 296 000,00 200 000,00 120 000,00 290 250,00 0.00 5750.00 4 300,00 124 300,00 233 850,00 PM 29 333 33 -5640100 Requirements 1. Explain to the CEO why the Controller has built up such a table, and explain how the table works. 2 pts. 2. Analyse and comment the table. 4 pts. 3. Suggest two key recommendations to Super's CEO. 2 pts 8 Budget data Sales: Quantities Selling price () Notebooks 100 000 8 Raw materials: Forecast quantities (grams) Purchasing cost (C/kg) Paper (RM) 100 Manufacturing a notebook requires two steps: cutting and broaching. The budgeted manufacturing costs are as follows: Cutting Broaching 5 minutesotebook 10 minutesotebook 6 per hour 5 per hour Labour costs are fixed and amount to 200 000 . Overhead costs amount to 120 000 . Actual data: Super Co. actually sold 105 000 notebooks at 7.8 /unit. And it bought 11 000 kg of paper for a total cost of 85 050 . The real cost of manufacturing was as follows: Cutting Broaching 6 minutesotebook 9 minutesotebook 7 per hour 6 per hour Actual labour costs have amounted to 207 800 , and overhead costs have actually cost 124 300 C On the basis of these figures, Super's CEO asked the Controller to provide an update on the company's situation. The Controller built up the following table: C ybabeb Vabbe Retum var. Varaph Price var. Vasara Total variance TO 840 000,00 -21 000,00 819 000,00 Volume var. 40 000,00 4.000,00 2 500,00 800 000,00 80 000,00 SO 000,00 840 000,00 88 000,00 RM 85 050,00 84 000,00 52 500,00 0,00 4000,00 10 500,00 750,00 63 000,00 2950,00 10 500,00 15 750,00 73 500,00 83 333,33 4166,67 87 500,00 78 750,00 94 500,00 cutting Broaching Labour Overhead 19 000,00 S050,00 23 500,00 11 166,67 7 800,00 4 300,00 32 816,67 0,00 0,00 700,00 207 800,00 200 000,00 120 000,00 266 666,621 0.00 200 000,00 120 000,00 296 000,00 200 000,00 120 000,00 290 250,00 0.00 5750.00 4 300,00 124 300,00 233 850,00 PM 29 333 33 -5640100 Requirements 1. Explain to the CEO why the Controller has built up such a table, and explain how the table works. 2 pts. 2. Analyse and comment the table. 4 pts. 3. Suggest two key recommendations to Super's CEO. 2 pts