dont bother about what i sent please answe this new question i just attached
Teddy pl. manufactures and sells motorised bicycle quent Occasionally it buys in a product rather than produce it if it is cheaper to deOne of Tolly ple's customers requested 400 engines. The management of Teddy ple are currently deciding whether to outsource the engines to Gem Lad a price of E150 caches to place them in house. The management accountant has provide you with the following information relating to the costs involved in the production of the engines in bo Tedly ple will be three types of material in the production of the engines and will have sufficient inventory on hand to meet their production requirements estimated the 406 engines will require 50 kg of metal 200 kg of Aluminium and 280 kg of Fiberglass Toddyple always maintains stack of metal as it is used in the production of its cher products. This material was purchased for E15.40 per kg two weeks ago, but since the basis 16.10 per kg lis reliable is Eldperky The inventory on hand of luminium was purchased several months ago for 17 per ke for in another project. However, 300 ks was left over as the purchasing manager verdered Madees so have my use for the aluminium her than in the production of the engines. The current purchase price is 16 per kg and Toddly ple will recere El per kg if it chooses to sell the alum. There are 280 kg of fiberglass in inventory which was purchased recently for 12 per kg. If the fiberglass is used in the production of the engines. It will have to be disposed of doe to its potential harmful effect Alcal disposal company will transport the material to an incinerator for 5 per kg and the incinerator will charge ) per kg to dispose of the material 2 Skilled direct labourers are paid a weekly wage of 1.000 each and are currently under utilised. It is expected than 100 hours of skillet labour required to produce the engines will be tested out of what is currently classified aside time it is expected that this onder will require four skilled workers and will take two weeks to complete The manufacture of the engines will require 5 skilled workers for 10 days. This killed direct labour relates to hours worked by casal employees who employed as required and paid an hourly rate of 15 per hour The skilled and undilled labourers weekdays, 5 days per week 3 Variable overheads are absorbed at a rate of E12 perskilled labour hot 4 Teddyple have been selby head office that they are to receive a fixed overhead location of E4.500 to cover ongoing head office support costs. If the company decides to produce the engines, it is estimated that incremental fixed Overheads will amount to 2.200 s if the machinery sex required for the production of the engines, it may be hired out for eso per direct skilled labour hout 6 Teddy pl. charge depreciation is machinery and the depreciation charge is expected to be 2,000 for the dust of the manufacture of the engines 7 Toklyple hired an accountant for one week to carry out a review of competitors prices before it accepted the ordet. This review cost 1.500, half of which has been paid You are required to: w Provide a brief explanation, wing examples from the guest for each of the following me mOpportunity cost Sunkost Commited cost 12 Marks) plc Based on the financial information provided above, recommend whether Teddy should produce the engines internally or purchase them from Gem La Support your answer with relevant explain artistiaattine. (23 ark) (c) Suggest Ten qualitative factors which Teddyple should comider before arriving at a decision whether to produce the engine tenally or source them ally IS 4:17 p.m. 3 Done Open Management Accounting S... Soak plc. commenced operations four years ago after its founding directors spotted a niche in the market for a special type of sports gel" which is used to treat athletes injuries. The gel is sold in plastic bottles and is expected to retail at 25 per bottle Soak plc uses a marginal costing system to report its profits and value its production. The management accountant is currently comparing its actual and budgeted operating results for the month of February 2021. The management accountant provided the following information: 1. Soak plc budgeted to produce and sell 10,000 bottles of gel during February 2. According to budget, cach bottle of gel produced required 1.5 litres of aloe vera concentrate and one bottle. The company agreed with the suppliers to purchase the aloe vera concentrate for 8 per litre and the bottle for 2 per bottle. 3. The mixing and pouring of the gel was expected to take 0.5 hour per bottle. The workforce consisted of both skilled and unskilled labourers and an average direct labour cost of 10.20 per hour was expected. Variable overheads were budgeted at 6 per labour hour. At the end of February, management were disappointed to report that it produced and sold only 9,700 bottles of gel . However, the actual selling price per bottle was 7.5 higher than expected. Each bottle of gel used 1.80 litres of aloe vera, costing 8.30 per litre, and each bottle cost 1.90. Due to unexpected delays, cach bottle of gel took 0.45 hours to mix and 0.30 hours to pour, costing 83,662. Variable production overheads were 58,750, You are required to: (a) Prepare a statement showing the budgeted contribution and the actual contribution for February (8 Marks) () Calculate the following variances: 1. Sales price: 2. Sales volume: 3. Materials usage: 4. Materials price 5. Labour efficiency: 6. Labour rate: 7. Variable overhead efficiency; & Variable overhead rate. (24 Marks) (c )Outline eight key factors that Soak ple should consider before deciding whether a variance should be investigated. (8 Marks) Total (100 Marks) Soak ple commmced operations four years ago after its founding directors spotted a niche in the market for a special type of sports gel" which is used to treat athletes injuries. The gel is sold in plastic bottles and is expected to retail at 25 per bottle. Soak plc. uses a marginal costing system to report its profits and value its production. The management accountant is currently comparing its actual and budgeted operating results for the month of February 2021. The management accountant provided the following information: 1. Soak ple budgeted to produce and sell 10,000 bottles of gel during February 2. According to budget, each bottle of gel produced required 1.5 litres of aloe vera concentrate and one bottle. The company agreed with the suppliers to purchase the aloe vera concentrate for 8 per litre and the bottle for 2 per bottle. I 3. The mixing and pouring of the gel was expected to take 0.5 hour per bottle. The workforce consisted of both skilled and unskilled labourers and an average direct labour cost of 10.20 per hour was expected. Variable overheads were budgeted at 6 per labour hour. At the end of February, management were disappointed to report that it produced and sold only 9,700 bottles of gel. However, the actual selling price per bottle was 7.5 higher than expected. Each bottle of gel used 1.80 litres of aloe vera, costing 8.30 per litre, and each bottle cost 1.90. Due to unexpected delays, each bottle of gel took 0.45 hours to mix and 0.30 hours to pour, costing 83,662. Variable production overheads were 58,750. You are required to: (8) Prepare a statement showing the budgeted contribution and the actual contribution for February (8 Marks) b) Calculate the following variances 1 Sales price; 2 Sales volume; 3 Materials weage: Materials price 5 Labour efficiency Labour rate Variable overhead efficiency s Nariable overhead tate Q#Marks) 10otline eight ke factors that Seak ple thould consider before deciding wathe variance should be assigned (8. Ark) Total (100 Marks) Question 2 Soak plc. commenced operations four years ago after its founding directors spotted a niche in the market for a special type of "sports gel" which is used to treat athletes injuries. The gel is sold in plastic bottles and is expected to retail at 25 per bottle Soak ple, uses a marginal costing system to report its profits and value its production. The management accountant is currently comparing its actual and budgeted operating results for the month of February 2021. The management accountant provided the following information: 1. Soak plc. budgeted to produce and sell 10.000 bottles of gel during February 2. According to budget, each bottle of gel produced required 1.5 litres of aloe vera concentrate and one bottle. The company agreed with the suppliers to purchase the aloe vera concentrate for 8 per litre and the bottle for 2 per bottle. 3. The mixing and pouring of the gel was expected to take 0.5 hour per bottle. The workforce consisted of both skilled and unskilled labourers and an average direct labour cost of 10.20 per hour was expected. Variable overheads were budgeted at 6 per labour hour. At the end of February, management were disappointed to report that it produced and sold only 9,700 bottles of gel. However, the actual selling price per bottle was 7.5 higher than expected Each bottle of gel used 1.80 litres of aloe vera, costing 8,30 per litre, and each bottle cost 1.90. Due to unexpected delays, each bottle of gel took 0.45 hours to mix and 0.30 hours to pour, costing 83,662. Variable production overheads were 58,750 You are required to: You are required to: (a) Prepare a statement showing the budgeted contribution and the actual contribution for February. (8 Marks) (b) Calculate the following variances: 1. Sales price; 2. Sales volume; 3. Materials usage; 4. Materials price, 5. Labour efficiency: 6. Labour rate; 7. Variable overhead efficiency: 8. Variable overhead rate. (24 Marks) (c Outline eight key factors that Soak plc. should consider before deciding whether a variance should be investigated. (8 Marks) Total (100 Marks) Question 2 Soak plc. commenced operations four years ago after its founding directors spotted a niche in the market for a special type of "sports gel" which is used to treat athletes injuries. The gel is sold in plastic bottles and is expected to retail at 25 per bottle Soak ple, uses a marginal costing system to report its profits and value its production. The management accountant is currently comparing its actual and budgeted operating results for the month of February 2021. The management accountant provided the following information: 1. Soak plc. budgeted to produce and sell 10,000 bottles of gel during February 2. According to budget, each bottle of gel produced required 1.5 litres of aloe vera concentrate and one bottle. The company agreed with the suppliers to purchase the aloe vera concentrate for 8 per litre and the bottle for 2 per bottle. 3. The mixing and pouring of the gel was expected to take 0.5 hour per bottle. The workforce consisted of both skilled and unskilled labourers and an average direct labour cost of 10.20 per hour was expected. Variable overheads were budgeted at 6 per labour hour. At the end of February, management were disappointed to report that it produced and sold only 9,700 bottles of gel. However, the actual selling price per bottle was 7.5 higher than expected Each bottle of gel used 1.80 litres of aloe vera, costing 8,30 per litre, and each bottle cost 1.90. Due to unexpected delays, each bottle of gel took 0.45 hours to mix and 0.30 hours to pour, costing 83,662. Variable production overheads were 58,750 You are required to: You are required to: (a) Prepare a statement showing the budgeted contribution and the actual contribution for February (8 Marks) (b) Calculate the following variances: 1. Sales price; 2. Sales volume; 3. Materials usage; 4. Materials price; 5. Labour efficiency: 6. Labour rate: 7. Variable overhead efficiency: 8. Variable overhead rate. (24 Marks) (c )Outline eight key factors that Soak plc. should consider before deciding whether a variance should be investigated. (8 Marks) Total (100 Marks) Teddy pl. manufactures and sells motorised bicycle quent Occasionally it buys in a product rather than produce it if it is cheaper to deOne of Tolly ple's customers requested 400 engines. The management of Teddy ple are currently deciding whether to outsource the engines to Gem Lad a price of E150 caches to place them in house. The management accountant has provide you with the following information relating to the costs involved in the production of the engines in bo Tedly ple will be three types of material in the production of the engines and will have sufficient inventory on hand to meet their production requirements estimated the 406 engines will require 50 kg of metal 200 kg of Aluminium and 280 kg of Fiberglass Toddyple always maintains stack of metal as it is used in the production of its cher products. This material was purchased for E15.40 per kg two weeks ago, but since the basis 16.10 per kg lis reliable is Eldperky The inventory on hand of luminium was purchased several months ago for 17 per ke for in another project. However, 300 ks was left over as the purchasing manager verdered Madees so have my use for the aluminium her than in the production of the engines. The current purchase price is 16 per kg and Toddly ple will recere El per kg if it chooses to sell the alum. There are 280 kg of fiberglass in inventory which was purchased recently for 12 per kg. If the fiberglass is used in the production of the engines. It will have to be disposed of doe to its potential harmful effect Alcal disposal company will transport the material to an incinerator for 5 per kg and the incinerator will charge ) per kg to dispose of the material 2 Skilled direct labourers are paid a weekly wage of 1.000 each and are currently under utilised. It is expected than 100 hours of skillet labour required to produce the engines will be tested out of what is currently classified aside time it is expected that this onder will require four skilled workers and will take two weeks to complete The manufacture of the engines will require 5 skilled workers for 10 days. This killed direct labour relates to hours worked by casal employees who employed as required and paid an hourly rate of 15 per hour The skilled and undilled labourers weekdays, 5 days per week 3 Variable overheads are absorbed at a rate of E12 perskilled labour hot 4 Teddyple have been selby head office that they are to receive a fixed overhead location of E4.500 to cover ongoing head office support costs. If the company decides to produce the engines, it is estimated that incremental fixed Overheads will amount to 2.200 s if the machinery sex required for the production of the engines, it may be hired out for eso per direct skilled labour hout 6 Teddy pl. charge depreciation is machinery and the depreciation charge is expected to be 2,000 for the dust of the manufacture of the engines 7 Toklyple hired an accountant for one week to carry out a review of competitors prices before it accepted the ordet. This review cost 1.500, half of which has been paid You are required to: w Provide a brief explanation, wing examples from the guest for each of the following me mOpportunity cost Sunkost Commited cost 12 Marks) plc Based on the financial information provided above, recommend whether Teddy should produce the engines internally or purchase them from Gem La Support your answer with relevant explain artistiaattine. (23 ark) (c) Suggest Ten qualitative factors which Teddyple should comider before arriving at a decision whether to produce the engine tenally or source them ally IS 4:17 p.m. 3 Done Open Management Accounting S... Soak plc. commenced operations four years ago after its founding directors spotted a niche in the market for a special type of sports gel" which is used to treat athletes injuries. The gel is sold in plastic bottles and is expected to retail at 25 per bottle Soak plc uses a marginal costing system to report its profits and value its production. The management accountant is currently comparing its actual and budgeted operating results for the month of February 2021. The management accountant provided the following information: 1. Soak plc budgeted to produce and sell 10,000 bottles of gel during February 2. According to budget, cach bottle of gel produced required 1.5 litres of aloe vera concentrate and one bottle. The company agreed with the suppliers to purchase the aloe vera concentrate for 8 per litre and the bottle for 2 per bottle. 3. The mixing and pouring of the gel was expected to take 0.5 hour per bottle. The workforce consisted of both skilled and unskilled labourers and an average direct labour cost of 10.20 per hour was expected. Variable overheads were budgeted at 6 per labour hour. At the end of February, management were disappointed to report that it produced and sold only 9,700 bottles of gel . However, the actual selling price per bottle was 7.5 higher than expected. Each bottle of gel used 1.80 litres of aloe vera, costing 8.30 per litre, and each bottle cost 1.90. Due to unexpected delays, cach bottle of gel took 0.45 hours to mix and 0.30 hours to pour, costing 83,662. Variable production overheads were 58,750, You are required to: (a) Prepare a statement showing the budgeted contribution and the actual contribution for February (8 Marks) () Calculate the following variances: 1. Sales price: 2. Sales volume: 3. Materials usage: 4. Materials price 5. Labour efficiency: 6. Labour rate: 7. Variable overhead efficiency; & Variable overhead rate. (24 Marks) (c )Outline eight key factors that Soak ple should consider before deciding whether a variance should be investigated. (8 Marks) Total (100 Marks) Soak ple commmced operations four years ago after its founding directors spotted a niche in the market for a special type of sports gel" which is used to treat athletes injuries. The gel is sold in plastic bottles and is expected to retail at 25 per bottle. Soak plc. uses a marginal costing system to report its profits and value its production. The management accountant is currently comparing its actual and budgeted operating results for the month of February 2021. The management accountant provided the following information: 1. Soak ple budgeted to produce and sell 10,000 bottles of gel during February 2. According to budget, each bottle of gel produced required 1.5 litres of aloe vera concentrate and one bottle. The company agreed with the suppliers to purchase the aloe vera concentrate for 8 per litre and the bottle for 2 per bottle. I 3. The mixing and pouring of the gel was expected to take 0.5 hour per bottle. The workforce consisted of both skilled and unskilled labourers and an average direct labour cost of 10.20 per hour was expected. Variable overheads were budgeted at 6 per labour hour. At the end of February, management were disappointed to report that it produced and sold only 9,700 bottles of gel. However, the actual selling price per bottle was 7.5 higher than expected. Each bottle of gel used 1.80 litres of aloe vera, costing 8.30 per litre, and each bottle cost 1.90. Due to unexpected delays, each bottle of gel took 0.45 hours to mix and 0.30 hours to pour, costing 83,662. Variable production overheads were 58,750. You are required to: (8) Prepare a statement showing the budgeted contribution and the actual contribution for February (8 Marks) b) Calculate the following variances 1 Sales price; 2 Sales volume; 3 Materials weage: Materials price 5 Labour efficiency Labour rate Variable overhead efficiency s Nariable overhead tate Q#Marks) 10otline eight ke factors that Seak ple thould consider before deciding wathe variance should be assigned (8. Ark) Total (100 Marks) Question 2 Soak plc. commenced operations four years ago after its founding directors spotted a niche in the market for a special type of "sports gel" which is used to treat athletes injuries. The gel is sold in plastic bottles and is expected to retail at 25 per bottle Soak ple, uses a marginal costing system to report its profits and value its production. The management accountant is currently comparing its actual and budgeted operating results for the month of February 2021. The management accountant provided the following information: 1. Soak plc. budgeted to produce and sell 10.000 bottles of gel during February 2. According to budget, each bottle of gel produced required 1.5 litres of aloe vera concentrate and one bottle. The company agreed with the suppliers to purchase the aloe vera concentrate for 8 per litre and the bottle for 2 per bottle. 3. The mixing and pouring of the gel was expected to take 0.5 hour per bottle. The workforce consisted of both skilled and unskilled labourers and an average direct labour cost of 10.20 per hour was expected. Variable overheads were budgeted at 6 per labour hour. At the end of February, management were disappointed to report that it produced and sold only 9,700 bottles of gel. However, the actual selling price per bottle was 7.5 higher than expected Each bottle of gel used 1.80 litres of aloe vera, costing 8,30 per litre, and each bottle cost 1.90. Due to unexpected delays, each bottle of gel took 0.45 hours to mix and 0.30 hours to pour, costing 83,662. Variable production overheads were 58,750 You are required to: You are required to: (a) Prepare a statement showing the budgeted contribution and the actual contribution for February. (8 Marks) (b) Calculate the following variances: 1. Sales price; 2. Sales volume; 3. Materials usage; 4. Materials price, 5. Labour efficiency: 6. Labour rate; 7. Variable overhead efficiency: 8. Variable overhead rate. (24 Marks) (c Outline eight key factors that Soak plc. should consider before deciding whether a variance should be investigated. (8 Marks) Total (100 Marks) Question 2 Soak plc. commenced operations four years ago after its founding directors spotted a niche in the market for a special type of "sports gel" which is used to treat athletes injuries. The gel is sold in plastic bottles and is expected to retail at 25 per bottle Soak ple, uses a marginal costing system to report its profits and value its production. The management accountant is currently comparing its actual and budgeted operating results for the month of February 2021. The management accountant provided the following information: 1. Soak plc. budgeted to produce and sell 10,000 bottles of gel during February 2. According to budget, each bottle of gel produced required 1.5 litres of aloe vera concentrate and one bottle. The company agreed with the suppliers to purchase the aloe vera concentrate for 8 per litre and the bottle for 2 per bottle. 3. The mixing and pouring of the gel was expected to take 0.5 hour per bottle. The workforce consisted of both skilled and unskilled labourers and an average direct labour cost of 10.20 per hour was expected. Variable overheads were budgeted at 6 per labour hour. At the end of February, management were disappointed to report that it produced and sold only 9,700 bottles of gel. However, the actual selling price per bottle was 7.5 higher than expected Each bottle of gel used 1.80 litres of aloe vera, costing 8,30 per litre, and each bottle cost 1.90. Due to unexpected delays, each bottle of gel took 0.45 hours to mix and 0.30 hours to pour, costing 83,662. Variable production overheads were 58,750 You are required to: You are required to: (a) Prepare a statement showing the budgeted contribution and the actual contribution for February (8 Marks) (b) Calculate the following variances: 1. Sales price; 2. Sales volume; 3. Materials usage; 4. Materials price; 5. Labour efficiency: 6. Labour rate: 7. Variable overhead efficiency: 8. Variable overhead rate. (24 Marks) (c )Outline eight key factors that Soak plc. should consider before deciding whether a variance should be investigated. (8 Marks) Total (100 Marks)
