Management accounting 1B.clear and full answers.

Pure lye purchases were 3 000 litres at N$42 per litre. Fragrance oils purchases were 1700 litres at N$30 per litre. It is Falesha Ltd.'s policy to calculate material price variances based on units issued to production and not units purchased. N$45 400 was paid for direct labour in the month of October and 4 600 hours of direct labour were recorded for the month. Requirement Mark Sub- Total total 3 3 Determine the standard gross profit from selling one 20 litre container 1.1 of Hygiene Q. Your answer should show the standard production cost per one 20 Litre container, standard selling price and standard gross profit per one 20 litre container. Calculate all the relevant variances (sales and production cost 1.2 variances) assuming that Falesha Ltd does not calculate mix and yield variances. Reconcile the budgeted gross profit to actual gross profit using the variances calculated in 1.2 above. NB: Where applicable, please show all workings Total 10 13 1.3 2 15 15 Y = N$120 000+ 0.15X Where: Y = total selling, distribution and administration expenses per year X = sales value. Each Mega Bar is sold at N$35 per unit and the following represents units produced and sold for two months of the year. March April (units) (units) Production 2 000 3 200 Sales 1 500 3 000 According to the company, all months of the year are regarded as equal. Requirement Mark Sub- Total total 10 10 For the month of April alone, prepare the statement of profit or loss and other comprehensive income applying the following principles: 1.1 (0) absorption costing marginal costing Prepare a statement that reconciles the profit obtained from 1.2 absorption costing to that obtained from marginal costing. Explain the reasons why there is a difference in the profit from the two approaches. NB: Where applicable, please show all workings Total 5 15 15 Total assignment 2: 76 marks Page 17 of 17 Pure lye purchases were 3 000 litres at N$42 per litre. Fragrance oils purchases were 1700 litres at N$30 per litre. It is Falesha Ltd.'s policy to calculate material price variances based on units issued to production and not units purchased. N$45 400 was paid for direct labour in the month of October and 4 600 hours of direct labour were recorded for the month. Requirement Mark Sub- Total total 3 3 Determine the standard gross profit from selling one 20 litre container 1.1 of Hygiene Q. Your answer should show the standard production cost per one 20 Litre container, standard selling price and standard gross profit per one 20 litre container. Calculate all the relevant variances (sales and production cost 1.2 variances) assuming that Falesha Ltd does not calculate mix and yield variances. Reconcile the budgeted gross profit to actual gross profit using the variances calculated in 1.2 above. NB: Where applicable, please show all workings Total 10 13 1.3 2 15 15 Y = N$120 000+ 0.15X Where: Y = total selling, distribution and administration expenses per year X = sales value. Each Mega Bar is sold at N$35 per unit and the following represents units produced and sold for two months of the year. March April (units) (units) Production 2 000 3 200 Sales 1 500 3 000 According to the company, all months of the year are regarded as equal. Requirement Mark Sub- Total total 10 10 For the month of April alone, prepare the statement of profit or loss and other comprehensive income applying the following principles: 1.1 (0) absorption costing marginal costing Prepare a statement that reconciles the profit obtained from 1.2 absorption costing to that obtained from marginal costing. Explain the reasons why there is a difference in the profit from the two approaches. NB: Where applicable, please show all workings Total 5 15 15 Total assignment 2: 76 marks Page 17 of 17