Haigh Ltd produces garden chairs. The budgeted output and sales for the month of April 2020 was 5,000 chairs. The standard cost is: WoodLabourVariable overheads Fixed overheads Total production cost Standard profit Standard selling price The actual results were: WoodLabourVariable overheads Fixed overheads Sales revenue 30 sq metres at £4 per sq metre 7 hours at £9 per hour7 hours at £5 per hour7 hours at £10 per hour £ 120.00 63.00 35.00 70.00 288.00 32.00 320.00 £1,606,500Actual production was 5,500 chairs and sales were 5,100 chairs. 170,000 sq metres at £3.50 per sq metre 40,000 hours at £10 per hour£174,000£370,000 Prepare a budgeted reconciliation statement for April 2020, which will show the actual profit for the month.

Haigh Ltd produces garden chairs. The budgeted output and sales for the month of April 2020 was 5,000 chairs. The standard cost is: WoodLabourVariable overheads Fixed overheads Total production cost Standard profit Standard selling price The actual results were: WoodLabourVariable overheads Fixed overheads Sales revenue 30 sq metres at £4 per sq metre 7 hours at £9 per hour7 hours at £5 per hour7 hours at £10 per hour £ 120.00 63.00 35.00 70.00 288.00 32.00 320.00 £1,606,500Actual production was 5,500 chairs and sales were 5,100 chairs. 170,000 sq metres at £3.50 per sq metre 40,000 hours at £10 per hour£174,000£370,000 Prepare a budgeted reconciliation statement for April 2020, which will show the actual profit for the month.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PB: Lens & Shades sells sunglasses for $37 each and is estimating sales of 21,000 units in January and...

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Haigh Ltd produces garden chairs. The budgeted output and sales for the month of April 2020 was 5,000 chairs. The standard cost is: £ wood 30 sq metres at £4 per sq metre 120.00 labour 7 hours at £9 per hour 63.00 Variable overheads 7 hours at £5 per hour 35.00 Fixed overheads 7 hours at £10 per hour 70.00 Total production cost 288.00 Standard profit 32.00 Standard selling price 320.00 The actual results were:    Wood 170,000 sq metres at £3.50 per sq metre Labour 40,000 hours at £10 per hour Variable overheads £174,000 Fixed overheads £370,000 Sales revenue £1,606,500 Actual production was 5,500 chairs and sales were 5,100 chairs. Prepare a budgeted reconciliation statement for April 2020, which will show the actual profit for the month. Identify the four different types of standards which…
Plas Hen Ltd produces wooden coffee tables. The budgeted output and sales for the monthMay 2020 was 4,400 tables. The standard cost is:                                                                                                                                             £          Wood                                20 sq. metres at £3 per sq metre                                  60.00          Labour                              5 hours at £8 per hour                                                   40.00          Variable overheads    5 hours at £4 per hour                     20.00          Fixed overheads              5 hours at £9 per hour                                                   45.00          Total production cost                                                                                             165.00          Standard profit…
The budget of Bisby plc shows total production overheads of £78m. They plan to work 6m hours and total labour costs for the year are £26m. Which of the following can be a suitable absorption rate for the production overhead?     i. £4 per hour ii.  £13 per hour   iii.  £3 per labour cost   iv.  £13 per labour cost   Select one: a. i and iii b. i and iv c. ii and iii d. ii and iv
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GardenRite Ltd manufactures wheelbarrows with a selling price of £100 per wheelbarrow. Budgeted production and sales volume is 2,000 wheelbarrows per month. During January 2021, 2,000 wheelbarrows were made of which 1,400 were sold. There was no opening inventory. The variable cost per wheelbarrow is £55. Fixed costs in January were, as budgeted, £50,000. Using marginal costing calculate the contribution and profit for January. O A. Contribution: £63,000, Profit £28,000 O B. Contribution: £90,000, Profit £13,000 O C. Contribution: £90,000, Profit £28,000 O D. Contribution: £63,000, Profit £13,000
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