Cyan plc manufactures a single product and operates a standard costing system. Budgeted sales and...
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Cyan plc manufactures a single product and operates a standard costing system. Budgeted sales and production for the month of January 2020 was 25,000 units. Standard costs for each unit are as follows: Sales price 100 per unit Direct materials 13 metres at 2 per metre Direct labour 3 hours at 12 per hour Fixed overheads are budgeted at 400,000 per month. The actual data for January 2020 is provided as follows: Sales price 98 per unit Units produced and sold 24,000 Direct material 14 metres at 1.85 per metre Direct labour 3.5 hours at 13.40 per hour Fixed overheads 390,000 REQUIRED: Please note: a maximum word count applies to parts (d) and (e) of this question ONLY. There are no maximum word counts for parts (a), (b) and (c). (a) Calculate the actual profit for the month of January 2020. (4 marks)
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