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Tabletopz DAC (Tabletopz) manufactures high quality wooden table mats using beech sourced from sustainable forests. The company began trading two years ago having identified
Tabletopz DAC (Tabletopz) manufactures high quality wooden table mats using beech sourced from sustainable forests. The company began trading two years ago having identified a niche market for the product, both in Ireland and Europe. During the year, Tabletopz was forced to purchase wood from a different company as the usual supplier did not have sufficient stock available. The company operates a standard variable (marginal) costing system and details relating to the most recent financial period are shown below. Actual information: Production in units Direct materials: 10,800 square metres beech wood Direct labour hours: 27,000 hours Variable production overhead Fixed production overhead Budgeted information: 135,000 300,240 486,000 194,400 30,150 Production in units 134,400 Direct materials: 10,080 square metres beech wood Direct labour: 33,600 hours Variable production overhead (based on direct labour hours) Fixed production overhead 282,240 483,840 225,792 29,200
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