(Solution) - a JB plc operates a standard marginal cost accounting system -(2025 Original AI-Free Solution)

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(a) JB plc operates a standard marginal cost accounting system. Information relating to product J, which is made in one of the company departments, is given

Actual production and costs for month 6 were as follows:
(i) Prepare a columnar statement showing, by element of cost, the:
(i) Original budget;
(ii) Flexed budget;
(iii) Actual;
(iv) Total variances;
(ii) Subdivide the variances for direct material and direct labour shown in your answer to (a) (i)-(iv) Above to be more informative for managerial purposes.