Using the Data Below, Reconcile the Two Statements and Comment

question 65

Essay

Using the data below, reconcile the two statements and comment on the results for each quarter and the year as a whole, reconciling the profits in each quarter.
The budgeted costs of making 150,000 units are as follows:
Overhead Absorption is based on 150,000 units. Selling Price is £11 per unit
$\begin{array}{ll} &£\\ \text {Direct Material} & 390,000 \\ \text {Direct Labour} & 450,000 \\ \text {Variable Overhead }& 60,000\\ \text {Fixed Production Overhead}&150,000\\ \text {Variable Selling and Admin}& 150,000\\ \text {Fixed Selling and Admin}&100,000 \end{array}$

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Definitions:

Consult Individually

The act of seeking advice or opinions from individuals on a one-to-one basis.

Subordinates

Employees or team members who are under the direction and control of a manager or supervisor within an organizational hierarchy.

Managerial Autonomy

The degree of freedom and independence a manager has in making decisions and setting strategies within an organization.

Follower Readiness

A concept in leadership that evaluates the extent to which followers have the ability and willingness to accomplish a specific task.