Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(c) The company envisages outsourcing the shortfall in the production of any of the three types of jigsaw. Briefly comment on Four non-financial considerations that

image text in transcribed
image text in transcribed
(c) The company envisages outsourcing the shortfall in the production of any of the three types of jigsaw. Briefly comment on Four non-financial considerations that Metal Shop should consider. (6 marks) QUESTION 3: (20 MARKS) The management accountant of Candle Ltd is finding it difficult to cope with increasing demands for information and has asked for your help. You have been asked to prepare variance analysis information for the March board meeting. You have been provided with budgeted and actual information as shown below. Notes: 1. Actual fixed production overheads for March amounted to 172,400. 2. Budgeted fixed production overhead is 175,000 per month, absorbed to production on direct labour hours. 3. Variable production overheads are applied to products based on budgeted labour hours. 4. The company's standard selling price is calculated on a markup of 25% on the standard production cost. 5. The company operates a standard absorption costing principles for preparation of information. (a) Calculate the standard selling price. (4 marks) (b) Prepare a cost statement showing the original budget, flexed budget and actual results. (4 marks) (c) Calculate relevant variances in as much detail as the information permits. (10 marks) (d) Give two plausible reasons for the Material Price Variance and the Labour Efficiency Variance. (2 marks)

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

Step: 3

blur-text-image

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

Critical Marketing Audit The Case Of Apple Inc.

Authors: Joseph Katie

1st Edition

365637712X, 978-3656377122

More Books

Students also viewed these Accounting questions

Question

State the assumptions underlying the M&M irrelevance theory?

Answered: 1 week ago

Question

Carry out an interview and review its success.

Answered: 1 week ago