Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

help me plz Question 3: Sunlight Ltd, produces house frames from aluminum composite. In December 2020, the budget and performance of Sunlight are as follows:

help me plz
image text in transcribed
Question 3: Sunlight Ltd, produces house frames from aluminum composite. In December 2020, the budget and performance of Sunlight are as follows: Budget Actual performance Sales Selling price VND 10,000,000/house frame VND 9,600,000/house frame Sales volume 300 frames 280 frames Fixed overheads VND 210 million VND 200 million Variable costs 300 frames * (50kg of 320 frames* (56 kg of Raw materials costs aluminum/frame) (VND aluminum/frame) * (VND 100,000/kg) 92,000/kg) 300 frames (10hours/frame) 320 frames (12hours/frame)* Direct labor costs (VND 120,000/hour) (VND 110,000/hour) Variable overheads VND 360 million VND 400 million Required: i) Calculate the profit variance for Sunlight Ltd. in December 2020 ii) Break down the profit variance calculated into different related variances iii) If Sunlight Ltd. specifies 10% of budget is a threshold for adverse (unfavorable) variance, specify which variances should be analyzed? Provide some possible reasons for such variances

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Accounting Information Systems

Authors: Marshall B. Romney, Paul J. Steinbart

13th edition

978-0133428537

Students also viewed these Accounting questions