(a(i))[1]
Calculate the overhead absorption rate for each direct labour hour.
(a(ii))[3]
Calculate the total standard cost of April’s output.
(b)[13]
Prepare a reconciliation statement showing how the total standard cost of April production (from part a(ii)) compares with the actual cost. Your response should include two direct material variances, two direct labour variances and two fixed overhead variances.
(c)[5]
Advise Adhi on whether he ought to apply the same standard costs to units produced in France as to those produced in Indonesia. Support your answer.
(d(i))[2]
State how a fixed budget differs from a flexed budget.
(d(ii))[1]
State one reason a business might prepare a flexed budget.