TERM PAPER QUESTION TWO Tanzania Breweries Limited (TBL) manufacture product Z. Its standard selling price is TZS55,000. The production and sales budget for the quarter ended 31st March 2022 was 7,500 units. The standard specification per unit of product Z comprises: Direct labour: 4 standard hours at TZS6,000 per hour Direct material: 1.2 kg at TZS 10,000 per kg Standard variable overhead: 4 standard hours at TZS1,000 per hour Budgeted fixed overhead: TZS75,000,000 At the end of the quarter, the management accountant showed the following: Production and sales of product Z in units 7,700, Actual sales revenue TZS434,270,000 Actual direct labour (31,570 hours) TZS 192,577,000 Actual direct materials (8,855kg) TZS89,436,000 Actual variable overheads TZS30,750,000 Actual fixed overhead TZS72,400,000 Required:

(a) Prepare a statement reconciling budgeted and actual profits in the quarter, using absorption costing.

(b) Prepare a statement reconciling budgeted and actual profit in the quarter, using marginal costing.

TERM PAPER QUESTION TWO Tanzania Breweries Limited (TBL) manufacture product Z. Its standard selling price is TZS55,000. The production and sales budget for the quarter ended 31 st March 2022 was 7,500 units. The standard specification per unit of product Z comprises: - Direct labour: 4 standard hours at TZS6,000 per hour - Direct material: 1.2kg at TZS10,000 per kg - Standard variable overhead: 4 standard hours at TZS1,000 per hour - Budgeted fixed overhead: TZS75,000,000 At the end of the quarter, the management accountant showed the following: - Production and sales of product Z in units 7,700 , - Actual sales revenue TZS434,270,000 - Actual direct labour (31,570 hours) TZS 192,577,000 - Actual direct materials (8,855kg)TZS89,436,000 - Actual variable overheads TZS30,750,000 - Actual fixed overhead TZS72,400,000 Required: (a) Prepare a statement reconciling budgeted and actual profits in the quarter, using absorption costing. (b) Prepare a statement reconciling budgeted and actual profit in the quarter, using marginal costing