Question Help please can someone explain this question

Aliyah97

please can someone explain this question

Aliyah97

Aliyah97

Aliyah97

Aliyah97

Aliyah97

Aliyah97

Aliyah97

Aliyah97

Aliyah97

Aliyah97

Aliyah97

Pian32

You need to find out the value per unit be using the yearly budget and appotioning it along with the information to get the April budget.

Sales
1320000/60000 = £22

April = 22 * 6000 = £132,000

Material used
Raw value is given £6.80/kg. For the accounts you would account for 6000 units (since this would be cost of sales) however for a budget you want the cash flow so would use the 6,216 produced figure.

6,216 * 2 * 6.8 = £84537.60 Round up £84,538

Labour
Labour is probably the most complicated as you need to factor in over time.

Hours required =6216 * 5/60 = 518

Labour = 452*8 + (518-452)*8*1.25 = £4,276

V.Production over head
V.prod per unit = 16500 / (66000*5/60) = 16500/5500 =£3

£3 * 518 (hours from earlier) = £1,554

F Production = £43,800