Additional Case Chapt 17 - Quayle Products plc manufactures...

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Quayle Products plc manufactures waste disposal units. Its sales and costs budget for November 2010 is as follows: Sales: 3000 units × €72 216.000 Costs Direct materials (metal) 3000 × (1kg × €14) (42.000) Direct materials (plastic) 3000 × (0.5kg × €7) (10.500) Direct labour: 3000 × (0.75 hours × €8) (18.000) Production overhead (86.500) 59.000 Other overheads (31.000) Net profit 28.000 The company does not absorb production overheads using an overhead absorption rate. It may be assumed that all of its overheads are fixed in nature. The company’s actual results for the month are as follows: Sales: 2950 units × €73 215.350 Costs: Direct materials (metal) 2950 × (0.9kg × €13.80) (36 639) Direct materials (plastic) 2950 × (0.5kg × €7.20) (10 620) Direct labour: 2950 × (0.7 hours × €8.20) (16 933) Production overhead (84 250) 66 908 Other overheads (32 250) Net profit 34 658 You are required to: (a) calculate: (i) sales profit volume variance (ii) sales price variance (iii) materials price variance (for both metal and plastic)
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This note was uploaded on 05/30/2011 for the course MIM 1001 taught by Professor Fredser during the Spring '11 term at International University in Germany.

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Additional Case Chapt 17 - Quayle Products plc manufactures...

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