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    Performance Management: Assignment # 4

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    madnansajid8765
    This document contains a student's assignment submission for a performance management course. It includes 4 questions analyzing variances in overhead expenditures and profits. Question 1 analyzes (i) variable overhead expenditure variance, (ii) variable overhead efficiency variance, (iii) fixed overhead expenditure variance, and (iv) fixed overhead volume variance. It then provides (2) actual and budgeted profit calculations and (3) an operating income statement analyzing variances in sales, materials, labor, and overhead costs between actual and budgeted amounts.

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    Performance Management: Assignment # 4

    Uploaded by

    madnansajid8765
    25 views3 pages
    This document contains a student's assignment submission for a performance management course. It includes 4 questions analyzing variances in overhead expenditures and profits. Question 1 analyzes (i) variable overhead expenditure variance, (ii) variable overhead efficiency variance, (iii) fixed overhead expenditure variance, and (iv) fixed overhead volume variance. It then provides (2) actual and budgeted profit calculations and (3) an operating income statement analyzing variances in sales, materials, labor, and overhead costs between actual and budgeted amounts.

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    by adnan sajid

    Original Title

    Variances Overheads

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    This document contains a student's assignment submission for a performance management course. It includes 4 questions analyzing variances in overhead expenditures and profits. Question 1 analyzes (i) variable overhead expenditure variance, (ii) variable overhead efficiency variance, (iii) fixed overhead expenditure variance, and (iv) fixed overhead volume variance. It then provides (2) actual and budgeted profit calculations and (3) an operating income statement analyzing variances in sales, materials, labor, and overhead costs between actual and budgeted amounts.

    Copyright:

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    25 views3 pages

    Performance Management: Assignment # 4

    Uploaded by

    madnansajid8765
    This document contains a student's assignment submission for a performance management course. It includes 4 questions analyzing variances in overhead expenditures and profits. Question 1 analyzes (i) variable overhead expenditure variance, (ii) variable overhead efficiency variance, (iii) fixed overhead expenditure variance, and (iv) fixed overhead volume variance. It then provides (2) actual and budgeted profit calculations and (3) an operating income statement analyzing variances in sales, materials, labor, and overhead costs between actual and budgeted amounts.

    Copyright:

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    of 3

    1

    Performance Management (F-5)

    Assignment # 4
    Performance Management
    Submitted To:
    Sir Tahir Mahmood
    ACCA-UK, FCA-PAK

    Submitted By:
    Adnan Sajid
    Id #
    100645-011
    Programme:
    M.com (Batch-6)
    2nd Semester

    University of Management & Technology.

    University Of Management & Technology (UMT) 100645-011


    2
    Performance Management (F-5)

    Q.No:1

    (i).Variable Over Head Expenditure Variance:-

    Actual Hours x Standard Rate = (8700 x 0.3) = 2610


    Bud did cost (Actual Variable Over Head) = 2810
    Variable Over Head Expenditure Variance = 200 U.F

    (ii).Variable Over Head Efficiency Variance:-

    Actual Units x Standard Hours Per unit = (5350 x 2) = 10700


    Actual Hours = 8700__
    Variable Over Head Efficiency Variance (In Hours) = 2000 F
    x: Standard variable Over Head Rate = 0.3
    Variable Over Head Efficiency Variable (In Rs.) = 600 F

    (iii).Fixed Over Head Expenditure Variance:-

    Budgeted Expenditure (Budgeted Units x Standard Rate)


    5500 x 7.40 = 40,700
    Actual Expenditure (Given) = 44,300
    Fixed Over Head Expenditure Variance = 3600 U.F

    (iv).Fixed Over Head Volume Variance:-

    Budgeted production at Standard Rate


    (Budgeted Units x Standard Rate) 5500 x 7.40 = 40,700
    Actual production at Standard Rate
    (Actual Units x Standard Rate) 5350 x 7.40 = 39590
    Fixed Over Head Volume Variance = 1110 U.F

    University Of Management & Technology (UMT) 100645-011


    3
    Performance Management (F-5)

    Actual Profit
    Sales 10, 5000
    Less:
    Material 11800
    Labour 17500
    Variable Over Head 2810
    Fixed Over Head 44300 76410
    Actual Profit / Gross Profit 28590

    Budgeted Profit
    = sales x Standard Profit
    = 5500 x 6
    = 33,000

    Operating Income Statement

    Budgeted Profit 33,000


    Sales Variance:-
    Selling Price Variance 2000 (A)
    Sales Volume Variance 900 (A) (2900)
    30100
    Cost Variance:-
    Material Price Variance 600 (A)
    Material usage Variance 500 (A)
    Labour Rate Variance 500 (F)
    Labour efficiency Variance 4000 (F)
    Idle Time Variance 600 (A)
    Variable O.H.Expenditure Variance 200 (A)
    Variable O.H.Efficiency Variance 600 (F)
    Fixed O.H.expenditure Variance 3600 (A)
    Fixed O.H.Volume Variance 1110 (A) (1510)
    Actual Profit 28590

    University Of Management & Technology (UMT) 100645-011

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