J. Jones Pty Ltd has provided the following information for the quarter ended in March 2016.
Budget production cost per unit:
Budget Per unit Actual Per unit
$ $
|
Direct materials 41,800
|
42.3
|
|
Direct labour 1.20
|
1.15
|
|
Indirect - variable 3.60
|
3.50
|
|
Plus Direct - fixed (per month) 8000
|
8500
|
|
Sales estimates (number of items
|
):
Budget
|
Actual
|
|
January
|
2800
|
2600
|
|
February
|
3000
|
2990
|
|
March
|
3250
|
3560
|
The budget selling price for the product is $85 per box, but the company's actual price varies according to negotiations with customers who buy in bulk.
Sales revenue:
Actual $
January 224 120 February 249 665
March 306 010
Period expenses:
|
|
|
Budget
|
|
|
Actual
|
|
|
|
January
|
February
|
March
|
January
|
February
|
March
|
|
Administration expenses
|
16 700
|
17 000
|
17 500
|
17 000
|
17 200
|
16 500
|
|
Selling expenses
|
47 600
|
51 000
|
55 250
|
49 306
|
54 926
|
67 322
|
|
Financial expenses
|
8 500
|
8 500
|
8 500
|
8 500
|
8 500
|
8 500
|
Activity
From this data you are required to prepare the following reports using the software of your choice and analyse these reports to present a variation report. Assume that a variation of +/- 5% of the actual result compared to the budgeted figure is acceptable in your analysis.
Cost of production budget
Income statement budget
Cost of production
Prepare an income statement performance report for budget and actual showing gross profit and net profit for each month and the quarter.
Prepare a performance report showing the variance for the quarter in dollars and percentages.
An analysis of the report. Assume that a variation of +/- 5% budget to actual is acceptable in your analysis.