Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Pankhurst PLC make and sell a single product. Annual sales in units for 2022 are expected to be 210,000, and standard cost and selling price
Pankhurst PLC make and sell a single product. Annual sales in units for 2022 are expected to be 210,000, and standard cost and selling price per unit is: Selling price 30 Variable costs: Materials 8 Labour 8 2 Overheads Annual fixed overheads for 2022 are budgeted at: Manufacturing: 528,000 Non-manufacturing 336,000 Actual production and sales for the month of January was 16,000 units. The actual revenue and expenditure for the month of January 2022 was as follows: Sales revenue 502,000 Expenditure: Materials 118,500 Labour 125,500 Variable overhead 32,400 Fixed overheads: Manufacturing 40,000 35,000 Non-manufacturing Pankhurst PLC divides the annual budget by 12 in order to produce monthly control reports. Required: a) Prepare the monthly control report showing original budget, flexed budget and variances. b) Using your report in (a above), give a brief analysis of Pankhurst's performance during the month. c) Suggest how this control report could be improved, describing any extra information you would need in order to do SO
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