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Direct Labour thon.hu 16 1 Bu 2013 Repertorio 3.400 units we procedendo 2.500 hollabour sorted conting $44.97 1.00 variables were in 90,00 office and were incurred Be wwwwwwwwww 4 Layor Weberon restoragement explaining prental or the varices calcaided in par terbesoedererence betyr blive E00200 PRESENT VALUE PACTORS This is the pretractors in This 17 18 4 O 1072 2 HI7 0.8264 0.116.972 081 O.TES 3 37722 0313 0.1342 67118 DAS 0.6750 4 7084 DS AT 21 . 7 3 . S3 DS4500 40.46.56 1503 0318 0.484T 14523 042516 501 0.43 0.4330 1.000 0.32 0.3805 1.400404341 0.000 0 0.0 0.0 3. 27 20 DO DO DO E. OG 3917 OSS 59 0.20 0.5120452 044 0644 ESTI 0:452904006 01.01.2003 422 0.40192 0.22 0.1899 3 4 5 . B40 DO 2002 0.13 0.13 0.3799 02291209 1864 0.12 0.0540 12 0.22 0.1670 1228 DE 0.78 13943 0.13 0.13 243 DUSTI 0,0454 3412 0.1815 DEN BARS 000 . Question B2 The Ultimate Chef Lad manufactures food processors. Their standard cost information for one food processor is: Total: 25 marks Formulas and Tables EOQ E 18 16 18 Materials Direct Labour Variable overbeads 2DC 2kg @ 9.00 per kg 1 hours @ 16.00 per hour 1.5 hours 12.00 per hour H PRESENT VALUE FACTORS 52 This table gives the present value factor to be applied to a single cash flow occuring in 'r years time for a given discount rate Years 9% 10% 12% 13% 14% 1 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 2 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 4 0.7084 0.6830 0.6587 0.6355 0.6133 0.5921 5 0.6499 0 6209 5935 0.5674 0.5428 0.5194 6 7 8 9 10 0.5963 0.5645 0.5346 0 5066 0.4803 0 4556 0.5470 0 5132 0.4817 0.4523 0.4251 0.3996 0.5019 0.4665 0.4339 0.4039 0 3762 0.3506 0.4604 0.4241 3909 0.3606 0.3329 0.3075 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 Budget information for November 2019: Budgeted selling price per food processor is 85. Budgeted sales volume was 3,000 units. Actual information for November 2019: 3,400 units were produced and sold generating 272,000 revenue. 6,100kg of materials were used costing 57,950. 2,900 hours of labor were worked costing 48,575. 51,000 of variable overheads were incurred. 30,000 of fixed overheads were incurred. Requirement: a) Calculate the following variances, stating clearly whether the variance is adverse of favourable: 1. Materials price variance 2. Materials usage variance 3. Labour rate variance 4. Labour efficiency variance 5. Sales price variance 6. Sales margin volume variance (12 marks) b) Write a short report to management explaining potential reasons for the variances calculated in part (a). (7 marks) c) Describe some of the action's management can take to ensure budgetary control is effective. (6 marks) 1 2 3 4 5 15% 20% 25% 30% 35% 40% 0.8696 0 8333 0.8000 0.7692 0.7407 0.7143 0.7561 0 6944 0.6400 0 5917 0.5487 0.5102 0.6575 0.5787 0 5120 0.4552 0.4064 0 3644 0.5718 0 4823 0.4096 0 3501 0 3011 0.2603 0.4972 0 4019 0.3277 0.2693 0 2230 O 1859 6 7 8 9 10 0.4323 0.3349 0.2621 0 2072 0.1652 0 1328 0.3759 0 2791 0.2097 0.1594 0.1224 0.0949 0.3269 0.2326 0.1678 0.1226 0.0906 0.0678 0.2843 0.1938 0.1342 0.0943 0.0671 0.0484 0 2472 0.1615 0.1074 0.0725 0.0497 0.0346 F Direct Labour thon.hu 16 1 Bu 2013 Repertorio 3.400 units we procedendo 2.500 hollabour sorted conting $44.97 1.00 variables were in 90,00 office and were incurred Be wwwwwwwwww 4 Layor Weberon restoragement explaining prental or the varices calcaided in par terbesoedererence betyr blive E00200 PRESENT VALUE PACTORS This is the pretractors in This 17 18 4 O 1072 2 HI7 0.8264 0.116.972 081 O.TES 3 37722 0313 0.1342 67118 DAS 0.6750 4 7084 DS AT 21 . 7 3 . S3 DS4500 40.46.56 1503 0318 0.484T 14523 042516 501 0.43 0.4330 1.000 0.32 0.3805 1.400404341 0.000 0 0.0 0.0 3. 27 20 DO DO DO E. OG 3917 OSS 59 0.20 0.5120452 044 0644 ESTI 0:452904006 01.01.2003 422 0.40192 0.22 0.1899 3 4 5 . B40 DO 2002 0.13 0.13 0.3799 02291209 1864 0.12 0.0540 12 0.22 0.1670 1228 DE 0.78 13943 0.13 0.13 243 DUSTI 0,0454 3412 0.1815 DEN BARS 000 . Question B2 The Ultimate Chef Lad manufactures food processors. Their standard cost information for one food processor is: Total: 25 marks Formulas and Tables EOQ E 18 16 18 Materials Direct Labour Variable overbeads 2DC 2kg @ 9.00 per kg 1 hours @ 16.00 per hour 1.5 hours 12.00 per hour H PRESENT VALUE FACTORS 52 This table gives the present value factor to be applied to a single cash flow occuring in 'r years time for a given discount rate Years 9% 10% 12% 13% 14% 1 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 2 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 4 0.7084 0.6830 0.6587 0.6355 0.6133 0.5921 5 0.6499 0 6209 5935 0.5674 0.5428 0.5194 6 7 8 9 10 0.5963 0.5645 0.5346 0 5066 0.4803 0 4556 0.5470 0 5132 0.4817 0.4523 0.4251 0.3996 0.5019 0.4665 0.4339 0.4039 0 3762 0.3506 0.4604 0.4241 3909 0.3606 0.3329 0.3075 0.4224 0.3855 0.3522 0.3220 0.2946 0.2697 Budget information for November 2019: Budgeted selling price per food processor is 85. Budgeted sales volume was 3,000 units. Actual information for November 2019: 3,400 units were produced and sold generating 272,000 revenue. 6,100kg of materials were used costing 57,950. 2,900 hours of labor were worked costing 48,575. 51,000 of variable overheads were incurred. 30,000 of fixed overheads were incurred. Requirement: a) Calculate the following variances, stating clearly whether the variance is adverse of favourable: 1. Materials price variance 2. Materials usage variance 3. Labour rate variance 4. Labour efficiency variance 5. Sales price variance 6. Sales margin volume variance (12 marks) b) Write a short report to management explaining potential reasons for the variances calculated in part (a). (7 marks) c) Describe some of the action's management can take to ensure budgetary control is effective. (6 marks) 1 2 3 4 5 15% 20% 25% 30% 35% 40% 0.8696 0 8333 0.8000 0.7692 0.7407 0.7143 0.7561 0 6944 0.6400 0 5917 0.5487 0.5102 0.6575 0.5787 0 5120 0.4552 0.4064 0 3644 0.5718 0 4823 0.4096 0 3501 0 3011 0.2603 0.4972 0 4019 0.3277 0.2693 0 2230 O 1859 6 7 8 9 10 0.4323 0.3349 0.2621 0 2072 0.1652 0 1328 0.3759 0 2791 0.2097 0.1594 0.1224 0.0949 0.3269 0.2326 0.1678 0.1226 0.0906 0.0678 0.2843 0.1938 0.1342 0.0943 0.0671 0.0484 0 2472 0.1615 0.1074 0.0725 0.0497 0.0346 F