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Last period A &B Limited budgeted to sell 1000 sets for ksh 280,000 but due...

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Accounting

Last period A &B Limited budgeted to sell 1000 sets for ksh 280,000 but due to bad trading environment they only managed 840 sets for ksh 228,400. Their production was 900 sets. They had no opening stock and no work in progress. During the period they suffered breakdowns amounting to 25 hours during which wages were paid at the normal rates. In addition, 120 MTS of materials were damaged in the store due to bad stacking. The other costs for the period were as follows
Purchases (5000MTS)59,200
Wages (4,450 hrs)36,560(includes idle time & pay)
Variable o/h 18,320
Fixed o/h 83,600
Selling costs 28,000
4,550 metric tonnes were issued to production
The standard cost card per set was as follows
Materials (5 mts @ 12ksh each)60
Labor (5 hrs @ ksh 8ph)40
Variable o/h (vary with prodn)20
Fixed oh (@ ksh 16 per labor hr)80
Factory cost per set 200
Selling and distribution 32
Total cost 232
Standard profit 48
Selling price 280
Required:
i) Budgeted vs. actual profit for the period (5 marks)
ii) Detailed variance analysis for the period (10 marks)

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