Changa mire Ltd

Changa mire Ltd. manufactures a wide variety of products. No stocks of any products or raw materials are held. The following is a calculation of the total budgeted contribution from Product X for last month:
Sales (23,000 units of Product X) $2,323,000
Raw materials (Type A): 115,000 kg $805,000
Raw materials (Type B): 57,500 kg. $345,000
Direct labour: 69,000 hours $690,000
Total budgeted contribution $483,000

The total actual contribution from Product X last month was somewhat less than the budgeted amount, as the following calculation shows

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

Sales (21,000 units of Product X) $2,205,000

Raw materials (Type A): 107,000 kg $802,500 .

Raw materials (Type B): 55,000 kg. $319,000

Direct labour: 61,000 hours $640,500


Total actual contribution $443,000

a) Prepare a detailed variance analysis (including raw materials mix and yield variances) (15 marks)
b) Prepare a reconciliation statement which reconciles the total budgeted and actual contribution for last month in as much detail as is possible from the information provided (10 marks)


I'm Martha!

Would you like to get a custom essay? How about receiving a customized one?

Check it out