Osborne Financial Performance book error? Question 4.5
mrderek88
Registered Posts: 44 💫 🐯 💫
This is a question in the Osborne Financial Performance book and I'm pretty sure the information provided is incorrect? Can someone please confirm to me that Im not going off my head?
Budget
Actual
Production (cans)
6,000,000
5,850,000
Drink
3,000,000 litres
£630,000
2,930,000 litres
£644,600
Cans
6,000,000 units
£240,000
5,855,000 units
£234,200
Direct Labour
3,000 hours
£36,000
2,900 hours
£34,500
Fixed Overheads
£200,000
£203,500
Total costs
£1,070,000
£1,116,800
Total costs
= drink + cans + direct labour + fixed overheads
= 630,000 + 240,000 + 36,000 + 200,000
= 1,106,000 not the £1,070,000 advised???
This is the way they have calculated the total cost for actual cost, but not for
budgeted?
As I said, they have calculated the total actual cost with everything (drink, cans, labour & overheads) - why not for budgeted?
Thanks
Derek
Budget
Actual
Production (cans)
6,000,000
5,850,000
Drink
3,000,000 litres
£630,000
2,930,000 litres
£644,600
Cans
6,000,000 units
£240,000
5,855,000 units
£234,200
Direct Labour
3,000 hours
£36,000
2,900 hours
£34,500
Fixed Overheads
£200,000
£203,500
Total costs
£1,070,000
£1,116,800
Total costs
= drink + cans + direct labour + fixed overheads
= 630,000 + 240,000 + 36,000 + 200,000
= 1,106,000 not the £1,070,000 advised???
This is the way they have calculated the total cost for actual cost, but not for
budgeted?
As I said, they have calculated the total actual cost with everything (drink, cans, labour & overheads) - why not for budgeted?
Thanks
Derek
0
Comments
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Have you checked the errata sheet on the Osborne books website?0
