The following statement was prepared for the Company ABC:

$

$

Sales

883,500

Direct materials

232,800

Direct wages

315,600

Variable overheads

155,400

Fixed overheads

95,100

798,900

84,600

Statement Of Variance

$

Sales volume(quantity)

45,000(A)

Sales Price

16,500(A)

Direct material-Price

12,600(F)

Direct material-Usage

20,400(A)

Direct labor-Rate

6,300(F)

Direct labor-Efficiency

21,900(A)

Fixed overhead-Expenditure

5,100(A)

 Note: The company produces a single product for which the standard material usage is 3 kilos @$6 per kilo. The standard wage rate is $12 per hour. There are no opening or closing stocks.
Required:
Calculate:a) […]

 
Company ABC had the following budget for Period 1:

Product Y

Product Z

Sales ( Units)

3,000

27,000

$

$

Standard selling price

30

7.50

Standard cost

18

6.00

Standard profit

12

1.50

Actual results for Period 1:

Product Y

Product Z

Sales ( Units)

9,000

24,000

$

$

Standard selling price

31.50

6.75

Standard cost

18.00

6.00

Profit

13.50

0.75

 Required:
(i) Calculate the:
(a) Sales margin (profit) price variance
(b) Sales margin (profit) mixture variance
(c) Sales margin (profit) quantity variance (15 marks)
(ii) In view of the actual results, […]

Company ABC has developed a new product for which a growing demand is anticipated.

Yearly Sales Trend

Units

1 st year

20,000

2 nd year

30,000

3 rd year

50,000

4 th year onwards

80,000

Company ABC need to choose between 2 alternative production arrangements:
(a) Buy a large machine with a capacity of 90,000 units and an estimated useful life of 6 years. The machine […]

This article looks at the role, management accounting can play in an organization and then to see what sort of qualification/criteria require if an organization recruits a management accountant.
It is important to understand that management accounting or also known as managerial accounting is an activity that is carried WITHIN an organization. It is not […]

Notes:
The traditional techniques of profit reporting are marginal costing and absorption cost. These two techniques have different impacts on profit (and stock) because of the way they treat fixed costs.
In marginal costing:

Fixed costs are treated as period cost and is written off to the Income Statement in the period incurred.

Marginal costing involves ascertaining marginal cost […]