Financial Performance Management (Online Exam)

FINANCIAL
PERFORMANCE
MANAGEMENT(ONLINE
EXAM)

Table of Contents
Question: 1...................................................................................................................................3
d) Role of sensitive analysis to cope with uncertainties..............................................................5
Question: 2...................................................................................................................................5
Material usage variance...............................................................................................................6
Material mix variance..................................................................................................................6
Total material yield variance ......................................................................................................6
Question: 3...................................................................................................................................6
REFERENCES................................................................................................................................1

Question: 1
Particulars lipstick lip-balm Lip-gloss
Production 30000 35000 3000
Direct material cost 5 10 10
Direct labour cost 15 10 10
Direct labour hours 3 2 2
Costs
Set up costs 120000
Receiving 30000
Despatch 15000
Machining 65000
Total overheads 230000
a)
lipstick lip-balm Lip-gloss
Production 30000 35000 3000
Direct labour hour per unit 3 2 2
Labour hours 90000 70000 6000
Total labour hours 166000
Overhead absorption rate
230000/166000
1.39
Absorption costing cost per unit as
follows:
Direct material 5 10 10
Direct labour cost 15 10 10
Overhead cost per unit 4.17 2.78 2.78