Solution for QID #85727: Question 5 (30 marks))Gargantua PLC has produced the followi | StudyHelpMe

Question 5 (30 marks)) Gargantua PLC has produced the following budget and actual information: Budget Actual Production units 10,000 11,000 Direct materials Magna – per unit 4 kg @ £1.50/kg 46,500 kg - cost £67,425 Carta – per unit 1 kg @ £5/kg 11,500 kg - cost £58,650 Labour – per unit 2.5 hours @ £7 26,400 hours – cost £187,440 Fixed overheads $75,000 $68,000 a) Prepare a budget of production costs, including direct materials, direct labor and fixed overheads. b) Determine the cost variances.