Solution to budgets and costing 1

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Required 8

Budgeted profit 80,000


Sales volume (20,000) Unf
Standard profit 60,000
Price variances (8,400) Unf
Sales 18,000 Fav
DM 19,000 Unf
DL 17,100 Unf
Var Ohd 5,700 Fav
Fixed Ohd 4,000 Fav

Usage variances (26,500) Unf


DM 10000 Unf
DL 13,500 Unf
Var Ohd 3000 Unf

Actual profit 25,100

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