break. You have been provided
the following income statement of Intas Ltd. for the month of
June:
[16 Marks] Variance
- Q 6 You Have Joined Intas Ltd As An Intern In Your Summer Break You Have Been Provided The Following Income Statement 1 (54.2 KiB) Viewed 49 times
1) Prepare a report comparing the master budget with a
flexible budget for June.
2) Calculate the following variances:
a. Sales volume. Page 6 of 7
Unit margin.
Manufacturing overhead (net).
Direct materials (net).
Selling and administrative (net).
Direct labor (net).
3) Prepare a variance report that accounts for the difference
between budgeted and actual operating income for Intas Ltd. in
June.
4) Comment on the significance of the variances you
calculated.
Actual 19,000 Variance (1000) 3,61,000 (39,000) Particulars Master Budget Units Produced and 20,000 sold Sales Revenue 4,00,000 Costs: Direct Materials 60,000 Direct Labour 60,000 Manufacturing 1,30,000 Overheads Selling and 1,00,000 administration Total Costs 3,50,000 Operating Income 50,000* 42,000 76,000 1,30,000 18,000 (16,000) 0 99,000 1,000 3,47,000 14,000 3,000 (36,000) Fixed The following data on cost is also shared with you: Particulars Variable Rate per unit Direct Materials 3* Direct Labour 3 Manufacturing Overheads 4 Selling & administration 2 Total 12* 50,000 60,000 1,10,000