Preparing Budgets: help with a question

milly1998

Can anyone help solve the whole page in the picture attached. I have filled in the correct answers to the first part but I’m so unsure as to how they are calculated?
I’ve had a look at the answers for the next parts and I’m unsure as to how they were calculated as well.
Help is appreciated.
Thank you x

Pian32

a)
Starting with the kg side. You get the total available in the year and subtract what remains. 16,000 - 1,000 = 15,000 used
£
Closing inventory = amount * price per amount
This is valued at purchase price = 35000/14000 = £2.50 kilo
Closing inventory = 1000 * 2.5 = £2,500

Value of used = 39,750 - 2,500 = 37,250 (same logic as for kg)

Labour

Available hours = 160 * 25 = 4000
Hours required = 20,000 *0.25 = 5000 (15/60 = 0.25) converted minutes to hours

Basic Time @8 = 4000 £32000
Overtime 1000 £12000 (5000-4000)*(8*1.5)
Total 5000 £44000


Overhead
Variable £2/hour 5000 £10000
Fixed £7750
Total £17750

I hope this helps if you need any more clarification let me know

milly1998

Amazing thank you!