Question
In May the budgeted sales were 19,000 bats and the standard cost card is as follows: Std cost std cost $ $ Materials (2kg at
In May the budgeted sales were 19,000 bats and the standard cost card is as follows: Std cost std cost $ $ Materials (2kg at $5/kg) 10 Labour (3 hrs at $12/hr) 36 Variable cost 46 Selling price 68 Contribution 22 In May the following results were achieved: 40,000kg of wood were bought at a cost of $196,000, this produced 19,200 cricket bats. No inventory of raw materials is held. The labour was paid for 62,000 hours and the total cost was $694,000. Labour worked for 61,500 hours. The sales price was reduced to protect the sales levels, however only 18,000 cricket bats were sold at an average price of $65.
calculate bugeted profit and Actual profit
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