【HND】财政预算OUTCOME2 -.docVIP

Part1 (1) Tricol plc Flexed Budget For June Original Budgets 2,000 units Flexed Budgets 1,600 units Actual results 1,600 units Variance F/A ￡ ￡ ￡ ￡ Direct Material 80,000 64,000 61,600 2,400 F Direct Labor 36,000 28,800 35,200 6,400 A Variable overheads 4,000 3,200 3,200 0 Depreciation 1,500 1,500 1,500 0 Rent and Rates 2,500 2,500 2,500 0 Administration Overheads 2,000 2,000 2,200 200 A Insurances 2,200 2,200 2,400 200 A Total 128,200 104,200 108,600 4,400 A (2) The variances are calculated as followed: DIRECT MATERIAL TOTAL VARIANCE (STANDARD UNITS OF ACTUAL PRODUCTION×STANDARD PRICE) —(ACTUAL QUANTITY×ACTUAL PRICE) [(4kg×1,600)×￡10]—￡61,600=￡64,000—￡61,600=￡2,400 (F) DIRECT MATERIAL PRICE VARIANCE ACTUAL QUANTITY×(STANDARD PRICE—ACTUAL PRICE) 5,600kgs×(￡10—￡61,600/5,600kgs)=5,600kgs×(￡10—￡11)= ￡5,600 (A) DIRECT MATERIAL USAGE VARIANCE STANDADR PRICE×(STANDARD UNITS OF ACTUAL PROCUTION—ACTUAL UNITS) ￡10×[(4kg×1,600)—5,600kgs]= ￡8,000 (F) DIRECT LABOUR TOTAL VARIANCE (STANDARD HOURS OF ACTUAL PRODUCTION×STANDARD RATE ph) —(ACTUAL HOURS×ACTUAL RATE ph) [(2hours×1,600)×￡9]—￡35,200=￡2,8800—￡35,200=￡6,400 (A) DIRECT LABOUR RATE VARIANCE ACTUAL HOURD×(STANDARD RATE p.h. —ACTUAL RATE ph) 3,520hrs×(￡9—￡35,200/3,520hrs)=3,520hrs×(￡9—￡10)= ￡3,520 (A) DIRECT LABOUR EFFICIENCY VARIANCE ACTUAL HOURS×(STANDARD HOURS OF ACTUAL PRODUCTION—ACTUAL HOURS) ￡9×[(2hours×1,600)—3,520hrs]= ￡9×320=￡2,880 (A) OVERHEAD TOTAL VARIANCE Total Standard Overhead for actual production—Total Actual Overheads ￡2×1,600+￡2,000+￡2,500+￡1,500+￡2,200—(￡3,200+￡2,200+￡2,500+￡1,500+￡2,400)=400 (A) (3) In the first part, we have calculated cost variances for Tricol plc at June. It totally produced 4,400 adverse variance