Question 2

Tasty Bakery Ltd budgeted to sell 20,000 oats biscuit packets in October 2020. The budgeted information for the month was:

Budget for October 2020 ($) Sales 56.000 Direct materials 12.000 Direct labour 10.000 Variable production overheads 6.000 Fixed production overheads 5,500 Variable non-production overheads 4.000 Fixed non-production overheads 8.500 Prot 10.000 The company actually sold 22.500 packets and achieved the following results; Actual Results for October 2020 ($) Sales 68.450 Direct materials 12.3 80 Direct labour 14.540 Variable production overheads 6.300 Fixed production overheads 5.3 00 Variable non-production overheads 5.100 Fixed non-production overheads 7.8 00 Prot 17.030