[Mustafi]

hi im not sure if u saw the question i uploaded

[Mustafi]

Hi, iasked in the wromg froum ealier, but is it possible to help with this Question. I have been trying to solve it, and i understand the concept of Operating statement, but not sure how to calculate this Thanks, Mustafi. Thank you for all the videos too.

Question:
Operating Statement

£ £ £
Budgeted profit 8,000
Sales volume variance 880 (A)
7,120
Selling price variance 3,560 (F)
10,680
Cost variances
A F
Direct labour – rate 1,086
efficiency 240
Fuel Price 420
Usage 1,280
Variable overhead expenditure 280
efficiency 180
Fixed overhead expenditure 400
Volume 1,760
3,880 1,766 2,114(A)
Actual profit 8,566

The company uses delivery miles as its cost nit, and the following details have been taken from the budget working papers for April 2022.

Expected activity
Charge to customers 200,000 delivery miles
Expected variable cost per delivery mile £0.30 per delivery mile
Direct labour (0.02 hours) £0.08
Fuel (0.1 litres) £0.04
Variable overhead (0.02 hours) £0.06

The following additional information has been determined from the actual accounting records for April 2022.
• Fixed overhead cost
• Fuel price
• Direct labour hours
Required:
a) Calculate for April 2022
i. The actual number of delivery miles
ii. Actual direct labour rate per hour
iii. The actual number of litres of fuel consumed
iv. The actual variable overhead expenditure

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