Pev dec 09

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flower
flower Registered Posts: 160 Dedicated contributor 🦉
Task 1.1 (c) Statemen of Reconcilliation
Can anyone help. Not able to find where the figures are coming from
in Working 1 i.e. 23,500 x 9500/10000. Unsure on the 23,500
Any help appreciated.

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  • crispy
    crispy Registered Posts: 466 Dedicated contributor 🦉
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    Hello,

    The £23,500 comes from the standard cost of the budgeted production:

    Eg. Total Standard Material cost for 1kg pack = £ 2.35 (1.50 + 0.75 + 0.10)
    budgeted Production = 10,000 packs

    10,000 X £ 2.35 = £ 23,500


    The standard cost of materials for actual production would be 9,500 * £ 2.35 = £ 22,325

    HTH
  • flower
    flower Registered Posts: 160 Dedicated contributor 🦉
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    Thank you so much.
  • flower
    flower Registered Posts: 160 Dedicated contributor 🦉
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    Sorry, still struggling to see where the 2.35 comes from. Think it is the way figures set out. Thought I was getting to grips with these variances.
  • crispy
    crispy Registered Posts: 466 Dedicated contributor 🦉
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    Have a look at the standard cost card:

    Materials (A Beans) 1.50
    Materials (B Beans) 0.75
    Packing (Foil) 0.10

    = £2.35 Standard Material Cost for 1kg of coffee
  • flower
    flower Registered Posts: 160 Dedicated contributor 🦉
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    Of Course. Think I spent too much time staring at the question. Thanks again.
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