Question
Case study 2 Tomorrow Aged Care (TAC) builds and runs aged care centres. TAC runs on very tight budgets, and a fixed construction cost for
Case study 2
Tomorrow Aged Care (TAC) builds and runs aged care centres.
TAC runs on very tight budgets, and a fixed construction cost for each centre of $250,000 is set. Once TAC raises $300,000, they commission construction on the next centre.
Recently, TACs CFO undertook a project to determine variances to the standard construction budgets set.
Projects are expected to be completed in 26 weeks and use the following standards.
Recently GAC completed construction on a new centre in Ballarat in regional Victoria, and the following information was obtained:
1.Calculate the total direct materials price and efficiency variances. 2.Calculate the total labour price and efficiency variances 3.Calculate the project overhead variance. Show your calculations. |
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