Question 12
You are employed as the assistant accountant in the widgets division of Gregson PLC.
Set out below is the operating statement for the division.
Original Flexed Actual Total Price Efficiency
Budget Budget Results Variance Variables Variances
Units sold 208,000 316,800 316,800 0
Materials consumed 864,000kgs 950,400kgs 760,320kgs 190,080kgs
Direct labour hrs 28,800 31,680 33,264 (1,584)
£ £ £ £ £ £
Sales revenue 1,152,000 1,267,200 1,191,168 (76,032) (76,032)
Variable costs
Materials 648,000 712,800 608,256 104,544 (38,016) (142,560)