LULU PANTS CO. ACCT 362 Spring 2019: Standard Costing Assignment

This assignment solution focuses on standard costing principles, specifically addressing a case study for Lulu Pants Co. It begins with a flexible budget analysis, detailing sales, variable costs (direct materials, direct labor, dyeing, stamping, and embroidery), and contribution margin across differ...Read More

STANDARD COSTING 1
Part 1:
Flexible
budget
Particulars Amounts in $
Units Sold 52,000.00 52,000.00 1,36,000.00
X Large Large Medium
Sales 36,40,000.00
31,20,000.0
0
74,80,000.0
0
142,40,000.0
0
Less: variable cost
Direct material 3,12,000.00 2,80,800.00 5,10,000.00 11,02,800.00
Direct labour 2,14,066.67 1,64,666.67 3,87,600.00 7,66,333.33
Dyeing 6,76,000.00 6,76,000.00
17,68,000.0
0 31,20,000.00
Stamping 2,34,000.00 2,34,000.00 6,12,000.00 10,80,000.00
Embroidery 6,24,000.00 6,24,000.00
16,32,000.0
0 28,80,000.00
Contribution 15,79,933.33
11,40,533.3
3
25,70,400.0
0 52,90,866.67
Less: fixed costs:

STANDARD COSTING 2
Manufacturing overhead 5,00,000.00
Selling and distribution
expenses 50,00,000.00
Administration expenses 40,00,000.00
Operating profit
-
42,09,133.33
Less: taxes -
Net Income
-
42,09,133.33
Task 2:
Budgeted profit
129486
7
Sales Volume variance
Priorit
y Team Shop Total
Sales Mix variance
(Actual
units
sold-
units
sales at
standard
mix)*st
andard
profit
per unit
4,99,
106.67
36,
640.00
-
1,66,61
3.33
3,69,
133.33
F 3,69,
133.33
Sales quantity variance
(Budget
ed sales
- Unit
Sales at
Standar
d
Mix)*St
andard
contribu
tion per
unit
25,31,
700.00
7,50,
933.33
-
3,64,00
0.00
29,18,
633.33
U
-
29,18,6
33.33

STANDARD COSTING 3
Market share variance
(Actual
market
share
%-
budgete
d
market
share
%)*Tot
al
market
in
units/pr
ofit
margin
per unit
-
139.32 -89.08
-
532.39
-
760.80
U -
760.80
Market size variance
(Weight
ed
average
price
average
of each
product
*(actual
market
size-
budeted
market
size)*bu
dgeted
market
share -0.14 -0.12 -0.13 -0.39
U
-0.39
Conversion costs
(Actual-
budget)
35,56,
394.00
Selling price variance
(Actual
sales
revenue
-Actual
sales
revenue
at
budgete
d price)
14,79,
700.00
-
6,15,7
00.00
-
27,83,1
00.00
-
19,19,1
00.00
U
-
19,19,1
00.00
Manufacturing Costs
(Actual-
budget)
-
39,910.
00
U
-
39,910.
00
Selling and Distributing
Expenses Variances
(Actual-
budget)
-
7,61,60
0.00
U
-
7,61,60
0.00
Other Operating (Actual- 4,15, 4,15,

STANDARD COSTING 4
expenses budget) 550.00
F
550.00
Actual profit
-
4,060.1
9