Page 328 - F2 - MA Integrated Workbook STUDENT 2018-19

Chapter 13

Test your understanding 8

SDE produces and sells a single product. The budget and actual results for
the latest period is as follows.

Budget Original budget Flexed budget Actual Variance
12,600 units 13,200 units 13,200 units

$ $ $ $

Sales
revenue 277,200 290,400 303,600 13,200 F

Variable costs:

Direct
material 75,600 79,200 78,350 850 F

Direct labour 50,400 52,800 51,700 1,100 F

Production
overhead 12,600 13,200 14,160 960 A

Fixed costs:

Production
overhead 13,450 13,450 13,710 260 A

Other
overhead 10,220 10,220 10,160 60 F

Profit 114,930 121,530 135,520 13,990 F

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