Last period A &B Limited budgeted to sell sets for ksh but due to bad trading environment they only managed sets for ksh Their production was sets. They had no opening stock and no work in progress. During the period they suffered breakdowns amounting to hours during which wages were paid at the normal rates. In addition, MTS of materials were damaged in the store due to bad stacking. The other costs for the period were as follows
Purchases MTS
Wages hrsincludes idle time & pay
Variable oh
Fixed oh
Selling costs
metric tonnes were issued to production
The standard cost card per set was as follows
Materials mts @ ksh each
Labor hrs @ ksh ph
Variable oh vary with prodn
Fixed oh @ ksh per labor hr
Factory cost per set
Selling and distribution
Total cost
Standard profit
Selling price
Required:
i Budgeted vs actual profit for the period marks
ii Detailed variance analysis for the period marks