Solution to budgets and costing 2

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Solution to budgets and costing 2

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Required 6

Budgeted profit 262,000

Sales volume (37,400)
Standard profit 224,600
Price variances:
Sales (44,500)
DM (9,000)
DL (17,700)
Var Ohd (5,880)
Fixed Ohd (20,000) (97,080)

Usage variances:
DM 3,000
DL (8,000)
Var Ohd (1,800) (6,800)

FOHD volume (5,000)

Actual profit 115,720

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