le.com/mail/u/0/#inbox/FMfcgxwKjWXSCKFSPKLRnZvsxdTPxwXq?projector=1&messagePartid=0.1 Question Two In month May 2020 the following data applies for Mwea rice manufactures: Standard costs for 1 tonne of brown rice 1.1.4 tonnes of rice seeds are needed at a cost of Shs.600 per tonne II. It takes 2 labour hours of work to produce 1 tonne of brown rice and labour is normally paid Shs.180 per hour. Idle time is expected to be 10% of hours paid; this is not reflected in the rate of Shs.180 above. III. 2 hours of variable overhead at a cost of Shs.300 per hour IV. The standard selling price is Shs.2,400 per tonne V. The standard contribution per tonne is Shs.560 per tonne Budget information for the month of May 2020 is: Fixed costs were budgeted at Shs 2,100,000 for the month 11. Budgeted production and sales were 8,400 tonnes The actual results for the month of May 2020 were as follows: 1. Actual production and sales were 8,000 tonnes 12,000 tonnes of rice seeds were bought and used, costing Shs.6,600,000 TH. 15,800 labour hours were paid for, costing Shs.3,033,600 IV. 15,000 labour hours were worked V. Variable production overhead cost shs 4,800,000 VI. Fixed costs were Shs 2,000,000 VII. Sales revenue achieved was shs 18,000,000 Required a) Prepare Budget profit statement for the month of May 2020 (3 Marks) b) Prepare the actual profit statement for the month of May 2020 (3 Marks) c) Calculate the variances for the month of May 2020 in as much detail as the information allows and reconcile the budget profit to the actual profit using marginal costing principles by preparing the operating statement, (12 marks) I TOSHIBA le.com/mail/u/0/#inbox/FMfcgxwKjWXSCKFSPKLRnZvsxdTPxwXq?projector=1&messagePartid=0.1 Question Two In month May 2020 the following data applies for Mwea rice manufactures: Standard costs for 1 tonne of brown rice 1.1.4 tonnes of rice seeds are needed at a cost of Shs.600 per tonne II. It takes 2 labour hours of work to produce 1 tonne of brown rice and labour is normally paid Shs.180 per hour. Idle time is expected to be 10% of hours paid; this is not reflected in the rate of Shs.180 above. III. 2 hours of variable overhead at a cost of Shs.300 per hour IV. The standard selling price is Shs.2,400 per tonne V. The standard contribution per tonne is Shs.560 per tonne Budget information for the month of May 2020 is: Fixed costs were budgeted at Shs 2,100,000 for the month 11. Budgeted production and sales were 8,400 tonnes The actual results for the month of May 2020 were as follows: 1. Actual production and sales were 8,000 tonnes 12,000 tonnes of rice seeds were bought and used, costing Shs.6,600,000 TH. 15,800 labour hours were paid for, costing Shs.3,033,600 IV. 15,000 labour hours were worked V. Variable production overhead cost shs 4,800,000 VI. Fixed costs were Shs 2,000,000 VII. Sales revenue achieved was shs 18,000,000 Required a) Prepare Budget profit statement for the month of May 2020 (3 Marks) b) Prepare the actual profit statement for the month of May 2020 (3 Marks) c) Calculate the variances for the month of May 2020 in as much detail as the information allows and reconcile the budget profit to the actual profit using marginal costing principles by preparing the operating statement, (12 marks) I TOSHIBA