olicoeur Ltd produces and markets a single product. Following budgeted information is available from the firm's records for the month of March and April 2022: March April Sales 100,000 units 105,000 units Production 120,000 units 110,000 units Standard costs: Direct materials per unit - 0.8 kg at Rs. 60 per kg Labour per unit - 27 minutes at Rs. 80 per hour Variable production overheads - Rs. 40 per labour hour Variable selling expenses - Rs. 15 per unit Fixed selling expenses Rs. 800,000 Fixed production overheads, at a normal output level of 105,000 units per month, are estimated at Rs. 2,100,000. The estimated selling price is Rs. 180 per unit. Actual fixed production overheads amounted to Rs 2,000,000 and Rs2,050,000 for the months of March and April respectively. Required: Assuming there are no opening stocks at the start of March, prepare the firm's profit and loss statement for the months of March and April 2022, using marginal costing and absorption costing.

olicoeur Ltd produces and markets a single product. Following budgeted information is available from the firm's records for the month of March and April 2022: March April Sales 100,000 units 105,000 units Production 120,000 units 110,000 units Standard costs: Direct materials per unit - 0.8 kg at Rs. 60 per kg Labour per unit - 27 minutes at Rs. 80 per hour Variable production overheads - Rs. 40 per labour hour Variable selling expenses - Rs. 15 per unit Fixed selling expenses Rs. 800,000 Fixed production overheads, at a normal output level of 105,000 units per month, are estimated at Rs. 2,100,000. The estimated selling price is Rs. 180 per unit. Actual fixed production overheads amounted to Rs 2,000,000 and Rs2,050,000 for the months of March and April respectively. Required: Assuming there are no opening stocks at the start of March, prepare the firm's profit and loss statement for the months of March and April 2022, using marginal costing and absorption costing.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 26BEB: Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes...

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The Sales Department of Minimus Inc. has forecast sales for May 2016 to be 40,000 units. Additional information follows: Materials used in production: Direct labor hours required in production: Prepare the following: a. A production budget for May. b. A direct materials budget for May. c. A direct labor budget for May.
Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in the coming year. Unit variable cost is 21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Fixed factory overhead is 30,000 and fixed selling and administrative expense is 48,000. Required: 1. Calculate the variable cost ratio. 2. Calculate the contribution margin ratio. 3. Prepare a contribution margin income statement based on the budgeted figures for next year. In a column next to the income statement, show the percentages based on sales for sales, total variable cost, and total contribution margin.
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Georgia Gasket Co. budgets 8,000 direct labor hours for the year. The total overhead budget is expected to amount to 20,000. The standard cost for a unit of the companys product estimates the variable overhead as follows: The actual data for the period follow: Using the four-variance method, calculate the overhead variances. (Hint: First compute the budgeted fixed overhead rate.)
Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing itsoperating budget for the coming year. Selected data regarding the companys two products areas follows: Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead Ls projected to be 25,000, and fixed manufacturing overhead is expected to be15,000. The estimated cost to produce one unit of the laminated putter head is: a. 42. b. 46. c. 52. d. 62.
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