-
+1 - 312-224-1615
Get in touch with us
-
support@helpwithassignment.com
Send us an e-mail
Solution Library
Prepare A Reconciliation Statement With Budgeted Profit And Actual Profit
Question
Alphasport Pic is a company which manufactures a range of sports products, including footballs designed for children. These football products require bladders, leather, packaging materials, and labour as direct inputs to the production of the product. Alphasport’s budget for the month of March 2010 was as follows:
Budget for March, 2010
|
Budget for March, 2010 |
|
£ |
£ |
£ |
|
Sales: (6,000 units @ £48 each) |
6,000 |
48.00 |
|
288,000 |
|
Variable costs: |
|
|
|
|
|
Bladders (6,000 units @ £3.00 each) |
6,000 |
3.00 |
18.000 |
|
|
Leather (200 ten-hide bales @ £456) |
200 |
456.00 |
91,200 |
|
|
Packing materials etc. |
|
|
7,800 |
|
|
Direct labour (5,000 hours @ £6.00 ph) |
5,000 |
6.00 |
30.000 |
|
|
Total variable costs |
|
|
|
(147,000) |
|
Fixed costs: |
|
|
|
|
|
Administrative expenses |
|
|
25,434 |
|
|
Salaries |
|
|
49,566 |
|
|
Total fixed costs |
|
|
|
(75,000) |
|
|
|
|
|
|
|
Budgeted Net Profit |
|
|
|
66,000 |
Due to an unexpected machine breakdown during March, Alphasport was only able to manufacture 60% of the budgeted production time (5,000 hours) and was unable to sanction any overtime, although the direct labour force was paid in full for the original budgeted hours. Actual costs and output during March were recorded as follows:
|
Actual for March, 2010 |
|
£ |
£ |
£ |
|
Sales (4000 units at £54 each) |
4000 |
54.00 |
|
216,000 |
|
Variable costs: |
|
|
|
|
|
Bladders (4000 units at £4.20 each) |
4000 |
4.20 |
16,800 |
|
|
Leather (100 ten hide bales at £800 each) |
100 |
800.00 |
80,000 |
|
|
Sundry and packaging materials |
|
|
5,200 |
|
|
Direct labour (5000 hours at £6.50 per hour)
|
5000 |
6.50 |
32,500 |
|
|
Total Variable costs |
|
|
|
134,500 |
|
Fixed Costs |
|
|
|
|
|
Administrative expenses |
|
|
26,310 |
|
|
Salaries |
|
|
49,890 |
|
|
Total Fixed costs |
|
|
|
76,200 |
|
Actual Net Profit |
|
|
|
5,300 |
Required:
(a) (i). Prepare a statement reconciling the budgeted profit with the actual profit and state the variances in the way you consider would be most helpful to management.
(ii). Comment briefly on any apparent (i.e. plausible) inter-relationships between variances.
(b) Consider the following statement: “There are more comprehensive models of management control and performance measurement than variance analysis available now such as the balanced score card that tries to incorporate other methods of observing good management practice.”
With reference to the above statement, compare and contrast variance analysis and balanced scorecard approaches as management tools for cost control and performance evaluation.
Summary
The question belongs to Accounting and it discusses about preparing reconciliation statement with budgeted profit and actual profit and commenting about inter-relationships between variances.
Total Word Count 505
Download Full SolutionWHAT OUR STUDENTS SAY
The precise and brief annotated bibliography submitted by the writing expert at HwA for my World Religion thesis paper was just what my professor had asked for. There was no problem in communication between the writing expert and me and the research work done was absolutely spot on.
Paul Morris Student
When I was pursuing my course in Enterprise Resource Planning in supply chain management, I constantly took help from HwA and got instant result. The ERP expert here in HwA is very helpful and has helped me to complete the course with distinction.
Andrew Oliver Student
1. I never faced any problem with marketing management or finance. But with operations management, I always suffered. I was unable to under the concepts of the decision tree analysis and the concept of location strategies. When I came across TheReliableTutor.com, I was relieved as they helped me overcome the horrors of operations management and transformed my fear into a genuine interest.
Simon Betteridge Student
I was apprehensive to begin with. I had bitter experiences with online service providers for assignments and homework essays during my masters. But the online dissertation help expert assigned to me by TheReliableTutor has been extremely responsible and professional in his approach to my subject of choice and the research work has been totally as I had wanted. We are on a good path I feel.
Sylvia Pilger Student
My professor gave an assignment where I had to make a marketing plan for a daily use product in the markets of Hastings, New Zealand. I was unsure whether anyone in the internet will be able to guide me with such accurate details. However, to my surprise I found out that HwA not only have separate Kiwi assignment helpers but there are marketing assignment experts also. I definitely got good grades and I am very happy with my results.
Timothy Young Student
Comments
this is a very good website
I have 50 questions for the same test your page is showing only 28
hi can you please help or guide me to answer my assignments. thanks
hi can anyone help or guide me to my assignments. thanks
This solution is perfect ...thanks
Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes
Perfect bank of solution.
great !
thanks for the quick response. the solution looks good. :)
thnx for the answer. it was perfect. just the way i wanted it.
works fine.