Gross profit: 11,206 Required: 3. Prepare a detailed analysis of the variances from standard that will reconcile expected (standard) and actual profits for the most recent trading period. (Show all workings) Requirement C.3 = 10 marks 4. Explain the results of your detailed variance calculations and the possible causes for each variance. Requirement C.4 = 5 marks Continued: for the voor onded 31 st noromhor 2020 lortons hi since cales turnover Was An 000 Jacksons Ltd is a small manufacturing company producing and distributing leather products for industrial and retail customers. One of Jacksons' products is known as Product A'. The standard cost card of Jacksons Ltd for Product A is shown below. Jacksons Ltd - Standard Cost Card Product A (Currently attainable standards) Unit Description Quantities and prices Direct materials 2.5 litres @ 4.00 per litre Direct labour 1.5 hours @ 8.00 per hour Fixed overhead 10.00 per unit produced Standard total unit cost: Standard selling price: Standard unit gross profit: 10.00 12.00 10.00 32.00 50.00 18.00 Other information The fixed overhead absorption rate is based on a consistent monthly production of 550 units. CRN:35565 Actual trading results for December 2020 are: 28,050 Jacksons Ltd Actual Trading Results (December 2020) Sales (for 550 units sold) Direct materials (for 1513 kilos consumed) 5.294 Direct labour (1.100 hours recorded) 6,600 Fixed overhead (550 units produced) 4,950 Cost of sales: Gross profit (16,844) 11,206 Gross profit: 11,206 Required: 3. Prepare a detailed analysis of the variances from standard that will reconcile expected (standard) and actual profits for the most recent trading period. (Show all workings) Requirement C.3 = 10 marks 4. Explain the results of your detailed variance calculations and the possible causes for each variance. Requirement C.4 = 5 marks Continued: for the voor onded 31 st noromhor 2020 lortons hi since cales turnover Was An 000 Jacksons Ltd is a small manufacturing company producing and distributing leather products for industrial and retail customers. One of Jacksons' products is known as Product A'. The standard cost card of Jacksons Ltd for Product A is shown below. Jacksons Ltd - Standard Cost Card Product A (Currently attainable standards) Unit Description Quantities and prices Direct materials 2.5 litres @ 4.00 per litre Direct labour 1.5 hours @ 8.00 per hour Fixed overhead 10.00 per unit produced Standard total unit cost: Standard selling price: Standard unit gross profit: 10.00 12.00 10.00 32.00 50.00 18.00 Other information The fixed overhead absorption rate is based on a consistent monthly production of 550 units. CRN:35565 Actual trading results for December 2020 are: 28,050 Jacksons Ltd Actual Trading Results (December 2020) Sales (for 550 units sold) Direct materials (for 1513 kilos consumed) 5.294 Direct labour (1.100 hours recorded) 6,600 Fixed overhead (550 units produced) 4,950 Cost of sales: Gross profit (16,844) 11,206
