Last month a manufacturing company's profit was $2,000, calculated using absorpt-新东方在线职业题库

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Last month a manufacturing company's profit was $2,000, calculated using absorption costing principles. If marginal costing principles had been used, a loss of $3,000 would have occurred. The company's fixed production cost is $2 per unit. Sales last month were 10,000 units.

What was last month's production (in units}?

________units

Chapter9AbsorptionandmarginalCosting

Absorption costing profit = $2,000 > Marginal Costing profit = $(3,000)

Therefore Production > Sales by $5,000

$5,000 = OAR x number of units change in inventory

$5,000 = $2 x number of units change in inventory

Therefore number of units change in inventory = $5.000/$2=2,500

If Sales = 10,000 units, therefore Production = Sales + 10,000 units = 12,500 units.

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What does an adverse variable overhead efficiency variance indicate and what might be the cause?

Explain briefly the possible causes of

(i) A favourable material usage variance

(ii) A favourable labour rate variance

(iii) An adverse sales volume contribution variance.

What is the relationship between the labour efficiency variance and the variable overhead efficiency variance? Why might the monetary value be different?

Explain the meaning and relevance of interdependence of variances when reporting to managers.

A balanced scorecard measures performance 什om four perspectives: customer satisfaction, growth, financial success and process efficiency. Briefly explain these processes.

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