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:

Sales Presentations

A strategic dialogue or demonstration by a salesman aimed at persuading customers to buy a product or service.

Empathy and Kindness

The ability to understand and share the feelings of others combined with the quality of being friendly, generous, and considerate.

Buyer and Seller

The parties involved in the exchange of goods or services for payment, where the buyer purchases and the seller provides the product or service.

Trust

The belief that another will act as they are expected to act.