Management accounting | Business & Finance homework help

Week 4 Hand-in Assignment

A consulting firm produces a service that requires the use of labor and materials. Each unit of service requires a standard labor time of 30 minutes (0.5 hours). The average pay rate for a labor hour is £20. The consulting firm considers all materials that are required for the service as variable overheads (OH), the cost of which is directly associated with the labor hours worked. It has been estimated that variable OH rate is £10 per service hour.

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The budgeted and actual costs, revenue and units for the month November are given in the table below:


Original Budget


Units of Service



Sales Revenue



Labor hours



Labor cost



Variable OH costs



Fixed Cost



Total Cost



Operating Profit



1. Calculate the flexed budget and the key variances between budgeted and actual results.
2. Reconcile the original budget and present the relationship between the budgeted and the actual profit for the month November
3. Discuss the calculated variances, and provide suggestions for better cost management (target length 300 words).

Use the Turnitin link below to submit your assignment. Due: End Day 7, Wednesday.


Could you used beside your refrences this referenceAtrill, P. & McLaney, E. (2012) Management accounting for decision makers. 7th ed. Harlow, England : Pearson Education Ltd.