p1 - management accounting

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Question No. 1

A company produces trays of pre-prepared meals that are sold to restaurants and food retailers. Three varieties of meals are sold: economy, premium and deluxe.

Extracts from the budget for last year are given below:

Sales quantity (trays)180,000360,000260,000
Selling price per tray$2.80$3.20$4.49
Total sales revenue$504,000$1,152,400$1,167,400
Direct material cost per tray$1.00$1.60$2.20
Total direct material cost$180,000$576,000$572,000
Direct labour cost per tray$0.50$0.50$0.50
Total direct labour cost$90,000$180,000$130,000
Overhead costs for the budget were estimated using the high-low method based on the total overhead costs for three previous years
Output720,000 trays680,000 trays840,000 trays
Total overheads$1,016,000$992,000$1,096,000

Actual results for last year were as follows :

 Economy PremiumDelure
Sales qualities (trays)186,000396,000278,000
Selling price per tray$2.82$3.21$4.50
Total sales revenue$524,520$1,271,160$1,251,000
Direct material cost per tray$1.10$1.50$2.10
Total direct material$204,600$594,000$583,800
Direct labour cost per tray$0.52$0.54$0.48
Total direct labour cost$96,720$213,840$133,440
Variable overheads$0.64$0.66$0.63
Total variable overheads$119,040$261,360$175,140
Actual fixed overheads $564,000   
The company operates a just-in-time system for purchasing and production and does not hold any inventory
Ignore inflation

Calculate, for the original budget, the budgeted fixed overhead costs, the budgeted variable overhead cost per tray and the budgeted total overheads costs. 

Choose the correct option from the given list.
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