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Question 1
a) Total sales margin variance
Formula: Budgeted profit- Actual profit at standard price
P: $50 000 – $55 000 = $5 000 A
Q: $45 000 – $50 000 = $5 000 A
R: $40 000 – $15 000 = $25 000 F
$15 000 F
b) Sales Margin Price Variance
Formula: Actual Quantity sold*Standard profit/unit – actual profit
P: 550 × (50000÷500) – 55 000 = 0
Q: 250 × (45000÷300) – 50000 = $12 500 A
R: 100 × (40000÷200) – 15000 = $5 000 F
$7 500A
c) Sales margin quantity variance
Formula: Budgeted Profit – Revised Standard Profit
Or, Standard profit per unit * (Actual quantity at standard mix – Budgeted quantity at standard mix)
P: 55 000 – 50 000 = $5 000 F
Q: 50 000 – 45 000 = $5 000 F
R: 15 000 – 40 000 = $25 000 A
$ 15 000 A
d) Sales Margin Mix Variance:
Formula: Revised Standard Profit – Standard Profit
Or, Standard profit per unit * (Actual quantity at standard mix – Actual quantity at actual mix)
P: 55000 – 60 000 = $5 000 A
Q: 50 000 – 55 000 = $5 000 A
R: 15 000 – 5000 = $10 000F
$0
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ASSIGNMENT COVER REGION: MIDLANDS PROGRAMME: MASTERS IN BUSINESS ADMINISTRATION INTAKE: 36 FULL NAME OF STUDENT: FADZAI MADZIMURE PIN: P1911731B CONTACT TELEPHONE/CELL: 0773254958 ID. NO.: 29-2021672K 58 COURSE NAME: ACCOUNTING FOR MANAGERS CODE: MBAZ502 ASSIGNMENT NUMBER. 1 DUE DATE: 10 MARCH 2019 Question 1 a) Total sales margin variance Formula: Budgeted profit- Actual profit at standard price P: $50 000 – $55 000 = $5 000 A Q: $45 000 – $50 000 = $5 000 A R: $40 000 – $15 000 = $25 000 F $15 000 F b) Sales Margin Price Variance Formula: Actual Quantity sold*Standard profit/unit – actual profit P: 550 × (50000÷500) – 55 000 = 0 Q: 250 × (45000÷300) – 50000 = $12 500 A R: 100 × (40000÷200) – 15000 = $5 000 F $7 500A c) Sales margin quantity variance Formula: Budgeted Profit – Revised Standard Profit Or, Standard profit per unit * (Actual quantity at standard mix – Budgeted quantity at standard mix) P: 55 000 – 50 000 = $5 000 F Q: 50 000 – 45 000 = $5 000 F R: 15 000 – 40 000 = $25 000 A $ 15 000 A d) Sales Margin Mix Variance: Formula: Revised Standard Profit – Standard Profit Or, Standard profit per unit * (Actual quantity at standard mix – Actual quantity at actual mix) P: 55000 – 60 000 = $5 000 A Q: 50 000 – 55 000 = $5 000 A R: 15 000 – 5000 = $10 000F $0 e) Sales Margin Volume Variance Formula: Budgeted Profit – Standard Profit P: 55 000 – 50 000 = $5 000 F Q: 50 000 – 45 000 = $5 000 F R: 15 000 – 40 000 = $25 000 A $ 15 000 A Question 2 Manjoro Ltd Cashflow Statement as at 31 December 2018 Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of fixed…

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