Answer Happy

Matteck plc
specialisesin components for the telecoms industry. One of their
products is the free-modem. This modem allows users to surf the web
using multiple servers. For the month of December 2011, the company
expects to produce and sell 5,000 free-modems.
The management of
Matteck have provided you with the following budgeted information
for the production of the free-modem.
Due to difficult
trading conditions, actual production and sales for December fell
by 10% of the budgeted amount.
Actual figures
for December 2011 were:
Direct Material cost
£160,000
Direct Material used
16,000 kg
Direct Labourcost
£95,000
Direct Labour hours
incurred
10,000 hours
Variable Production
Overheads
£47,500
Supervision costs
£3,400
Rent and Rates
£1,200
Administration Overheads
£2,100
Depreciation
£3,000
The following
additional information may also be relevant:
Note: This is the
only information provided, however other issues may have arisen not
mentioned above. You may make other assumptions as long as they are
reasonable. You should clearly state any assumptions you have made
in your answers.
You are required
to: