User Account

All Pages

Prepare reconciliation between budgeted and actual profit

Assignment Help Managerial Accounting
Reference no: EM133129092

Question - ABC Lda is a manufacturer of textile face masks which started operations in the second quarter of 2021 due to the Covid pandemic.

For the second semester of 2021 the company expected:

To sell each mask at €4 and sell 500,000 units.

Each mask requires 0.3 metres of material which is bought at the budgeted price of €5 per meter.

It takes 15 minutes of direct labour to make one mask. Direct labour workers are paid €9 per hour in proportion to the hours they actually work.

The company estimates that indirect salaries will be €5,000 per month and other overheads will be €10,000 per month.

Actual Results for the second semester of 2021:

The company sold 400,000 units at selling price of €5 per unit.

The company used 100,000 m of material incurring costs of €600,000.

Direct Labourers were paid €800,000 in total and took on average 12 minutes per mask.

Indirect salaries were €36,000 and other overheads were as expected.

Required - Prepare the reconciliation between the budgeted and actual profit. Provide a possible scenario that explains what might have happened in the company.

Reference no: EM133129092

Questions Cloud

Principles of computer security : What concept from the reading is the most applicable to you now in your profession, and how might you implement it?
Is freedom a universal virtue : Is freedom a universal virtue, or does it vary by culture? Or both universal and relative to differing cultures?
Cultural heritage of a particular group of students : Take something from the learning this week and talk about how you will apply it in your classroom.
VRIO analysis of the resources and capabilities : What implications does your strategy canvas have for the strategies of these competitors - VRIO analysis of the resources and capabilities of an organization
Prepare reconciliation between budgeted and actual profit : Direct Labourers were paid €800,000 in total and took on average 12 minutes per mask. Prepare the reconciliation between the budgeted and actual profit
What are the specific elements of fantasy : Why is modern fantasy such an important genre of literature for children and what are the specific elements of fantasy?
Protect information systems infrastructure : Identify the security components necessary to protect the information systems infrastructure. What key hardware components should be implemented?
Result of the dollar depriciating in value : What is likely to happen to US export and import spending as a result of the dollar depriciating in value
Differences between variable and fixed costs : 1. What are the differences between variable and fixed costs? Please. Give examples. What are the implications for value-creating decisions?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Determine the cost of jobs

Evaluate the total cost of the work in process inventory on January 31. Determine the cost of jobs completed during January, and show the proper journal entry to reflect job completion.

  Determine the costs of output to finished goods

Direct materials from shaping process: 100 units and $1000 in total. Direct labor of colouring: $150 in total. Determine the costs of output to finished goods

  What price will magic fun charge if uses cost-plus pricing

Variable cost of $2,000,000 during a month when it sold 200,000 units. What price will Magic Fun charge if it uses cost-plus pricing and a markup of 20%?

  Find conditions that give rise to material misstatement

Identify four (4) issues (accounting or otherwise) in the above case that may have an impact on the planning of the audit of BHP for the year ending 30th June 2012.

  What the overhead budget for an activity level would

What the overhead budget for an activity level of 80% would be? The following extract is taken from the overhead budget of X

  Determine a statement of cost of goods manufactured

Determine a statement of Cost of Goods manufactured for 2017. (Hint: determine an analysis of changes in Finished Goods Inventory.)

  Find which strategy is best do nothing

Which strategy is best: Do nothing? Follow the advice of Thomas Seymour? Or follow James Hamilton's strategy? How aggressive?

  What is amount of sales that will be necessary to earn

ABC, Inc. produces a product that has a variable cost of $2.50 per unit. What is amount of sales that will be necessary to earn

  What are the estimated cash collections in December

Collections of credit sales are 50% in the month of sale, 40% in the month following sale, What are the estimated cash collections in December

  Explain why warner might want to allocate security

Explain why Warner might want to allocate security department costs to other departments.

  What will be effect of the lease on burrito bill earnings

What will be the effect of the lease on Burrito Bill's earnings for the first year? Show the separate components as well as the total amount

  Calculate the manufacturing cycle time

Following is a typical schedule for a 50-copy spiral-bound job: Waiting for copying to begin 18. Calculate the manufacturing cycle time

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd