Pendennis plc had the following budget and actual figures for Product ZN6 during April:OutputSales revenueRaw materialsLabourFixed overheadsProfitBudgetA. £12,500 favourableB. £13,000 adverseC. £13,000 favourableD. £12,500 adverse2,200 units£205,000(98,800) 28,000 metres(65,000) 13,000 hours(21,400)19,800What is the direct labour rate variance for Product ZN6 for the month of April?Actual£176,000(77,000) 22,000 metres(66,000) 11,000 hours(24,200)8,8002,500 units

Solution: Standard labor rate = Budgeted labor cost / Budgeted labor hours = 66,000 / 11000 = 6 per…

Pendennis plc had the following budget and actual figures for Product ZN6 during April: Budget Actual Output Sales revenue Raw materials Labour Fixed overheads Profit 2,200 units £ 176,000 (77,000) 22,000 metres (66,000) 11,000 hours (24,200) 8800 2,500 units £ 205,000 (98,800) 28,000 metres (65,000) 13,000 hours (21,400) 19 800

Pendennis plc had the following budget and actual figures for Product ZN6 during April: Budget Actual Output Sales revenue Raw materials Labour Fixed overheads Profit 2,200 units £ 176,000 (77,000) 22,000 metres (66,000) 11,000 hours (24,200) 8800 2,500 units £ 205,000 (98,800) 28,000 metres (65,000) 13,000 hours (21,400) 19 800

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 7P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level...

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