Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need help with question 1 . 1 and 1 . 2 steps by step A cornpany manufactures and seas a single prodtnt. Bodgeted data per
Need help with question and steps by step
A cornpany manufactures and seas a single prodtnt. Bodgeted data per unit of the product is: Sell Price VObie Cost' Fixed ProJctOn overhead 860 370 290 All varNe costs are manufacturing i.e there are no non-manufacturlng viribl above fixed production overtmd absorption rate is based on budgeted production of 12.000 units per period. mn-pr0ductiM overhead (A1 fixed) is R16, 800 per period, Atual saes and protaction for two periods has been: Sales Productim Period 1 11 600 12000 units Period 2 12 400 units 12 300 units Tterewas no stockatttE startofPeriodfTheliingoric4ilinitVa/iabl Costsa totalfiiedcosts were asper budget in both periods. REQUIRED 1.1 Prepare statements of Comprehensive iroomei rbothe showirg the actual results for each of the two 1 using ccsfrg, (7) 1.2The company wishes to compare the results reported 1 1 above with those that would be reported using mzgind costing. Prepare tie staternent of cornprehensive income for periods (iC period & Period 2), using ma@nal costing, stowing tie actual results for each of the two periods. 1-3 44Exviain fully Why the profits reported in period 1 differ when BrOfitiii caiCuIatilikiiigiibSorptk)ti' marginal costir4CaIculations are 1
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started