Osborne Financial Performance book error? Question 4.5

mrderek88

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

coojee

Have you checked the errata sheet on the Osborne books website?