Question 1

The following information was obtained from records of a manufacturing unit using standard costing system.

Budgeted Actual

Production per month 2500 units 2000 units

Assume 8 hours / day

Working days 25 26

Fixed overhead $ 50000 $45000

Variable overhead $ 15000 $ 15000

Required

Calculate the following overheard variances

1. Variable overheard cost variance
2. Variable overheard expenditure variance
3. Variable overheard efficiency variance
4. Fixed overheard cost variance
5. Fixed overheard expenditure variance
6. Fixed overheard volume variance
7. Fixed overhead efficiency variance
8. Fixed overhead capacity variance

Question 2

From the following information from the books of Magaga (Pvt) Ltd, draw up the trial balance as at 31 December, 2018

$

Sales 40000

Purchases 35000

Sales returns 500

Purchase returns 620

Opening stock 10000

Provision for doubtful debts 80

Wages and salaries 3000

Rates 600

Telephone 100

Shop fitting at cost 4000

Van at cost 3000

Debtors 980

Creditors 700

Bad debts 20

Capital 17900

Bank 300

Drawings 1800