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with hospital service as the background apply the strategies of matching capacity and demand Sec B: Total 20 Marks: Compulsory Q4. JB plc operates a
with hospital service as the background apply the strategies of matching capacity and demand Sec B: Total 20 Marks: Compulsory Q4. JB plc operates a standard marginal cost accounting system. Information relating to product J, which is made in one of the company departments, is given below. Standard marginal product cost Product J Unit (E) Direct material 6 kilograms at 4 per kg Direct labour 1 hour at 7 per hour Variable production overheads 24 *Variable production overhead varies with units produced. Budgeted fixed production overhead, per month: 100 000. Budgeted production for product J: 20 000 units per month. Actual production and costs for month 6 were as follows: Units of J produced 18 500 (E) Direct materials purchased and used: 113 500kg 442 650 Direct labour: 17 800 hours 129 940 Variable production overhead incurred 58 800 Fixed production overhead incurred 104 000 735 390 You are required to: A) Prepare (1) Flexible budget (ll) Calculate material, labour, variable overhead and fixed overhead variances (it) Identify possible causes for the variances (4+6+4 Marks) (CILO 3) Q5. Explain the methods that are used to measure divisional financial performance (6 Marks) (CILO 3)
with hospital service as the background apply the strategies of matching capacity and demand
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