Management Accounting – Calculations and Income statement
[Calculate those variance through the case scenario]
(Every calculation process should be shown in detail.)
The case scenario can be found on SAP assignment attached file.
1.Direct Labour Efficiency Variance = (Actual hours – Standard hours) Standard Price
2.Variable O/H Spending variance = Actual Variable O/H – (Actual hours x Standard Variable Overhead Rate per hour)
3.Variable O/H Efficiency Variance = Standard Variable O/H rate per hour (Actual hours – Standard Hours)
[Create an income statements for actual and budgeted ]
[calculate net profit]
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