Direct materials<\/span><\/p>\n<\/td>\n

$15 per unit <\/span><\/p>\n<\/td>\n

Fixed cost for the period:<\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

Direct labour<\/span><\/p>\n<\/td>\n

$12 per unit <\/span><\/p>\n<\/td>\n

Manufacturing expenses<\/span><\/p>\n<\/td>\n

$300,000<\/span><\/p>\n<\/td>\n<\/tr>\n

Indirect expenses<\/span><\/p>\n<\/td>\n

$8 per unit <\/span><\/p>\n<\/td>\n

Administrative expenses<\/span><\/p>\n<\/td>\n

$250,000<\/span><\/p>\n<\/td>\n<\/tr>\n

Variable manufacturing cost<\/span><\/p>\n<\/td>\n

$6 per unit <\/span><\/p>\n<\/td>\n

Selling and distribution<\/span><\/p>\n<\/td>\n

$100,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Required:\u00a0 Flexible budget for 9,000 units, 15,000 units and 17,000 units; (a) Total cost; (b) Cost per unit <\/span><\/p>\n

[Answer: (1) $10,19,000; $12,65,000 and\u00a0 $13,47,000] <\/span><\/i><\/p>\n

(2) $113.22; $84.33 and $79.24] <\/span><\/i><\/p>\n

\u00a0<\/span><\/b><\/p>\n

Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n

DQ: 2<\/span><\/b><\/p>\n

The extracted data are given below:<\/span><\/p>\n\n\n\n\n

\n Volume of output<\/span><\/p>\n<\/td>\n	\n 50,000 units<\/span><\/p>\n<\/td>\n	\n 100,000 units<\/span><\/p>\n<\/td>\n<\/tr>\n
\n Total cost <\/span><\/p>\n<\/td>\n	\n $500,000<\/span><\/p>\n<\/td>\n	\n $800,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required: \u00a0\u00a0\u00a0\u00a0 (a) Variable cost per unit by high low method; (b) Fixed cost; <\/span><\/p>\n (c) Budget for the production volume of 70,000 units and 110,000 units<\/span><\/p>\n [Answer: (1) $6; (2) $200,000; (3) $620,000 and $860,000]<\/span><\/i><\/p>\n \u00a0<\/span><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 3<\/span><\/b><\/p>\n Magic Polymers (P) Ltd manufactures synthetic footwear. Following data are related to casual slippers: <\/span><\/p>\n\n\n\n\n\n\n\n\n\n \n Particulars <\/span><\/i><\/p>\n<\/td>\n \n Per unit ($)<\/span><\/i><\/p>\n<\/td>\n<\/tr>\n \n Direct materials <\/span><\/p>\n<\/td>\n \n 30<\/span><\/p>\n<\/td>\n<\/tr>\n \n Direct labour <\/span><\/p>\n<\/td>\n \n 20<\/span><\/p>\n<\/td>\n<\/tr>\n \n Fixed manufacturing expenses\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 ($50,000)<\/span><\/p>\n<\/td>\n \n 5<\/span><\/p>\n<\/td>\n<\/tr>\n \n Office expenses\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (80% fixed)<\/span><\/p>\n<\/td>\n \n 10<\/span><\/p>\n<\/td>\n<\/tr>\n \n Selling and distribution\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 (30% fixed)<\/span><\/p>\n<\/td>\n \n 15<\/span><\/p>\n<\/td>\n<\/tr>\n \n Selling price per unit <\/span><\/p>\n<\/td>\n \n 125<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required: Flexible budget cost for 6,000 units, 8,000 units and 15,000 units showing:<\/span><\/p>\n (a) Total cost with variable cost and fixed cost; (b) Profit <\/span><\/p>\n [Answer: (a) Variable cost = $375,000; $500,000; $937,500;<\/span><\/i><\/p>\n Fixed cost = $175,000; TC = $550,000; $675,000 and $11,12,500;<\/span><\/i><\/p>\n (b) $200,000; $325,000 and $762,500]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 4<\/span><\/b><\/p>\n The following extracted expenses are for normal capacity of 2,000 units is given by EM Company: <\/span><\/p>\n\n\n\n\n\n \n Maintenance expenses<\/span><\/p>\n<\/td>\n \n $100,000 (60% fixed and 40% variable)<\/span><\/p>\n<\/td>\n<\/tr>\n \n Indirect expenses<\/span><\/p>\n<\/td>\n \n $50,000 (50% fixed and 50% variable)<\/span><\/p>\n<\/td>\n<\/tr>\n \n Supervision & inspection<\/span><\/p>\n<\/td>\n \n $200,000 (30% fixed and 70% variable)<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required: Total cost at 1,800 units and 2,400 unit of output. <\/span><\/p>\n [Answer: For 1,800 units: $96,000; $47,500 and $186,000;<\/span><\/i><\/p>\n For 2,400 units: $108,000; $55,000 and $228,000]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 5<\/span><\/b><\/p>\n Costs for output level of 6,400 units are given below by OP Company:<\/span><\/p>\n\n\n\n\n\n\n \n Variable cost:<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Fixed cost<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Direct labour cost<\/span><\/p>\n<\/td>\n \n $102,400<\/span><\/p>\n<\/td>\n \n Administrative cost<\/span><\/p>\n<\/td>\n \n $20,400<\/span><\/p>\n<\/td>\n<\/tr>\n \n Direct material cost<\/span><\/p>\n<\/td>\n \n $49,600<\/span><\/p>\n<\/td>\n \n Selling and distribution<\/span><\/p>\n<\/td>\n \n $3,600<\/span><\/p>\n<\/td>\n<\/tr>\n \n Direct expenses<\/span><\/p>\n<\/td>\n \n $3,200<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Unit selling price\u00a0\u00a0\u00a0\u00a0 $35<\/span><\/p>\n Required:<\/span> (1) Flexible budget for 8,000 units; (2) Amount of profit at 8,000 units<\/span><\/p>\n [Answers: Variable cost = $194,000; Fixed cost = $24,000;<\/span><\/i><\/p>\n Total cost = $218,000; Profit = $62,000]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 6<\/span><\/b><\/p>\n The cost of 10,000 units of product is given below by BA Company:<\/span><\/p>\n\n\n\n\n\n \n Direct material<\/span><\/p>\n<\/td>\n \n $40,000<\/span><\/p>\n<\/td>\n \n Repair and maintenance<\/span><\/p>\n<\/td>\n \n $12,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Direct wages<\/span><\/p>\n<\/td>\n \n $60,000<\/span><\/p>\n<\/td>\n \n Insurance<\/span><\/p>\n<\/td>\n \n $15,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Direct expenses<\/span><\/p>\n<\/td>\n \n $20,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Additional information:\u00a0\u00a0\u00a0 <\/span><\/p>\n (a) The difference in cost for repair and maintenance is $0.50 per unit between 10,000 and 9,000 units of output.<\/span><\/p>\n (b) Insurance cost a $9,000 units volume amounted to $14,000<\/span><\/p>\n Required: Flexible budget for 12,000 units<\/span><\/p>\n [Answer: Total cost = $174,000]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 7<\/span><\/b><\/p>\n The following expenses for a month capacity of 10,000 units are given to you with other data by BD Company: <\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n \n Direct materials<\/span><\/p>\n<\/td>\n \n $400,000<\/span><\/p>\n<\/td>\n \n Fixed cost: <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Direct labour<\/span><\/p>\n<\/td>\n \n $300,000<\/span><\/p>\n<\/td>\n \n Salaries 100% fixed<\/span><\/p>\n<\/td>\n \n $ 250,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Prime cost<\/span><\/p>\n<\/td>\n \n $700,000<\/span><\/p>\n<\/td>\n \n Depreciation (fixed)<\/span><\/p>\n<\/td>\n \n $50,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Mixed overhead:<\/span><\/p>\n<\/td>\n<\/tr>\n \n Indirect expenses 30% variable & 70% fixed<\/span><\/p>\n<\/td>\n \n $100,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Maintenance expenses 60% variable & 40% fixed<\/span><\/p>\n<\/td>\n \n $300,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Power and fuel variable 70% & fixed 30%<\/span><\/p>\n<\/td>\n \n $400,000<\/span><\/p>\n<\/td>\n<\/tr>\n <\/p>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n <\/tbody>\n<\/table>\n Prepare flexible budget for 80% and 90% output to be attained in the next month <\/span><\/p>\n [Answers: Variable cost: $984,000 and $11,07,000;Fixed cost = $570,000;<\/span><\/i><\/p>\n Total cost:\u00a0 80% = $15,54,000; 90% = $16,77,000]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 8<\/span><\/b><\/p>\n BH Manufacturing Company manufactures a single product of which market demand exists for additional quantity. <\/span><\/p>\n At present the company is utilizing only 70% of the plant capacity and the following data are available:<\/span><\/p>\n\n\n\n\n\n \n Sales revenue<\/span><\/p>\n<\/td>\n \n $35,000<\/span><\/p>\n<\/td>\n \n Fixed cost<\/span><\/p>\n<\/td>\n \n $10,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Selling price per unit<\/span><\/p>\n<\/td>\n \n $10<\/span><\/p>\n<\/td>\n \n Step fixed cost<\/span><\/p>\n<\/td>\n \n $6,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Variable cost per unit<\/span><\/p>\n<\/td>\n \n $4<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Additional information:<\/span><\/p>\n (a) At above 70% working capacity, the selling price falls by 10%<\/span><\/p>\n (b) The step fixed remains unchanged at 60% to 79% capacity but will increase by $1,000 between 80% to 100 % capacity.<\/span><\/p>\n Required<\/span>: Flexible budget for 80% and 90% of capacity<\/span><\/p>\n [Answers: Total cost at 80% = $33,000; 90% = $35,000, <\/span><\/i><\/p>\n Profit at 80% = $3,000; 90% = $5,500]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n SEGREGATION METHOD<\/span><\/b><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 9\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 old 3<\/span><\/span><\/b><\/p>\n Following information is given below by ABC Manufacturing Company: <\/span><\/p>\n\n\n\n\n\n\n\n \n Particulars <\/span><\/i><\/p>\n<\/td>\n \n 10,000 units<\/span><\/i><\/p>\n<\/td>\n \n 25,000 units<\/span><\/i><\/p>\n<\/td>\n<\/tr>\n \n Direct material<\/span><\/p>\n<\/td>\n \n $200,000<\/span><\/p>\n<\/td>\n \n $500,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Direct labor<\/span><\/p>\n<\/td>\n \n $300,000<\/span><\/p>\n<\/td>\n \n $750,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Indirect expenses<\/span><\/p>\n<\/td>\n \n $600,000<\/span><\/p>\n<\/td>\n \n $825,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Depreciation\u00a0 <\/span><\/p>\n<\/td>\n \n $80,000<\/span><\/p>\n<\/td>\n \n $80,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required: (a) Variable cost per unit; (b) Budgeted cost for 8,000 units, 15,000 units and 28,000 units by tabular method<\/span><\/p>\n [Answer: (a) $15; (b) $10,50,000; $15,05,000 and $23,50,000]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 10\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 old 9<\/span><\/b><\/p>\n Costs at two different levels of output are as follows BE Company:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n \n Activities <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Output in units<\/span><\/p>\n<\/td>\n \n 3,000 units <\/span><\/p>\n<\/td>\n \n 5,000 units<\/span><\/p>\n<\/td>\n<\/tr>\n \n Direct material<\/span><\/p>\n<\/td>\n \n $15,000<\/span><\/p>\n<\/td>\n \n $25,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Direct labour<\/span><\/p>\n<\/td>\n \n $30,000<\/span><\/p>\n<\/td>\n \n $50,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Manufacturing overhead<\/span><\/p>\n<\/td>\n \n $16,000<\/span><\/p>\n<\/td>\n \n $20,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Office overhead<\/span><\/p>\n<\/td>\n \n $8,000<\/span><\/p>\n<\/td>\n \n $10,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Selling overhead<\/span><\/p>\n<\/td>\n \n $3,500<\/span><\/p>\n<\/td>\n \n $4,500<\/span><\/p>\n<\/td>\n<\/tr>\n \n Selling price per unit<\/span><\/p>\n<\/td>\n \n $25<\/span><\/p>\n<\/td>\n \n $25<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required<\/span>: Flexible budget for 4,000 units by showing profit <\/span><\/p>\n [Answer: Variable cost = $74,000; Fixed cost = $17,000; <\/span><\/i><\/p>\n Total cost = $91,000; Profit = $9,000]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n \u00a0<\/span><\/b><\/p>\n VARIANCES<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 11<\/span><\/b><\/p>\n The information relating to overhead costs are given by BJ Company:<\/span><\/p>\n\n\n\n\n\n\n\n\n \n Standard capacity based on normal capacity 5,000 hours:<\/span><\/p>\n<\/td>\n \n Actual hours worked<\/span><\/p>\n<\/td>\n \n 4,300 hours<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Fixed overhead<\/span><\/p>\n<\/td>\n \n $5,000<\/span><\/p>\n<\/td>\n \n Actual overhead incurred<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Variable overhead<\/span><\/p>\n<\/td>\n \n $5,000<\/span><\/u><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Fixed overhead<\/span><\/p>\n<\/td>\n \n $5,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Total<\/span><\/p>\n<\/td>\n \n $10,000<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Variable overhead<\/span><\/p>\n<\/td>\n \n $4,000<\/span><\/u><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Total\u00a0\u00a0 <\/span><\/p>\n<\/td>\n \n $9,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Standard hours<\/span><\/p>\n<\/td>\n \n 4,250 hours<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required: Three variances<\/span><\/p>\n [Answer: Spending = ($300) F; Efficiency = $50 U; <\/span><\/i><\/p>\n Capacity = $750 U] *FCPU = $1; VCPU = $1<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 12<\/span><\/b><\/p>\n The compiled records of KL Company are as follows:<\/span><\/p>\n\n\n\n\n\n\n\n \n Activities<\/span><\/i><\/p>\n<\/td>\n \n Budgets (standard)<\/span><\/i><\/p>\n<\/td>\n \n Actual<\/span><\/i><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Output (in unit)<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n 12,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Hours<\/span><\/p>\n<\/td>\n \n 5,000<\/span><\/p>\n<\/td>\n \n 5,500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Fixed overhead cost<\/span><\/p>\n<\/td>\n \n $5,000<\/span><\/p>\n<\/td>\n \n $5,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Variable overhead cost<\/span><\/p>\n<\/td>\n \n $20,000<\/span><\/p>\n<\/td>\n \n $27,500<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Normal output is 5,000 units\u00a0 <\/span><\/p>\n Calculate: Three overhead Variances<\/span><\/p>\n [Answers: SV = $5,500 U; EV = ($2,000) F; CV = ($1,000) F;<\/span><\/i><\/p>\n Or\u00a0\u00a0 SV = $5,500 U; EV = $2,000 U; CV = Nil;<\/span><\/i><\/p>\n * SQ <\/span><\/i>= Actual output x Std hours \u00f7 Std output = 6,000 hours<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 13<\/span><\/b><\/p>\n The flexible budgeting data and other information have been presented below by BK Company:<\/span><\/p>\n\n\n\n\n\n\n\n\n \n Budgeted allowance = $400,000 + $5 x DLH<\/span><\/p>\n<\/td>\n<\/tr>\n \n Normal Capacity<\/span><\/p>\n<\/td>\n \n 100,000 DLH<\/span><\/p>\n<\/td>\n<\/tr>\n \n Standard time per unit of output<\/span><\/p>\n<\/td>\n \n 2 DLH<\/span><\/p>\n<\/td>\n<\/tr>\n \n Actual output<\/span><\/p>\n<\/td>\n \n 52,000 units<\/span><\/p>\n<\/td>\n<\/tr>\n \n Actual hours worked<\/span><\/p>\n<\/td>\n \n 98,000 DLH<\/span><\/p>\n<\/td>\n<\/tr>\n \n Actual overhead paid<\/span><\/p>\n<\/td>\n \n $865,500 <\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required: Overhead three variances\u00a0\u00a0 <\/span><\/p>\n [Answers: SV = $24,500 (F); EV = $30,000 (F); CV = $16,000 (F)]<\/span><\/i><\/p>\n *SQ = 52,000 \u00d7 2DLH = 104,000<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 14<\/span><\/b><\/p>\n The details regarding manufacturing overhead cost and other relevant information are below by BL Company:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n \n Actively level<\/span><\/p>\n<\/td>\n \n 50,000 DLH<\/span><\/p>\n<\/td>\n \n 100,000 DLH<\/span><\/p>\n<\/td>\n<\/tr>\n \n Manufacturing cost<\/span><\/p>\n<\/td>\n \n $300,000<\/span><\/p>\n<\/td>\n \n $400,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Other information:<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Normal capacity<\/span><\/p>\n<\/td>\n \n 100,000 DLH<\/span><\/p>\n<\/td>\n<\/tr>\n \n Actual DLH (standard) produced<\/span><\/p>\n<\/td>\n \n 102,000 DLH<\/span><\/p>\n<\/td>\n<\/tr>\n \n Actual labour worked and paid<\/span><\/p>\n<\/td>\n \n 98,000 DLH<\/span><\/p>\n<\/td>\n<\/tr>\n \n Actual overhead paid<\/span><\/p>\n<\/td>\n \n $420,500<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required:<\/span> (1) Amount of fixed manufacturing cost; (2) Overhead three variance<\/span><\/p>\n \u00a0[Answers: FMC <\/span><\/i>= Total cost \u2013 VCPU \u00d7 Output <\/span><\/i>= $200,000; <\/span><\/i><\/p>\n SV = $24,500 (A); EV = $8,000 F; CV = $4,000 (F)]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 15<\/span><\/b> <\/b><\/p>\n Bionic Energy (P) Ltd at has normal capacity of 5,000 hours and other information:<\/span><\/p>\n\n\n\n\n\n\n \n Standard\u00a0 capacity<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n Actual capacity <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Fixed overhead<\/span><\/p>\n<\/td>\n \n $100,000<\/span><\/p>\n<\/td>\n \n Fixed overhead<\/span><\/p>\n<\/td>\n \n $80,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Variable overhead<\/span><\/p>\n<\/td>\n \n $80,000<\/span><\/p>\n<\/td>\n \n Variable overhead<\/span><\/p>\n<\/td>\n \n $90,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Standard quantity (hours)<\/span><\/p>\n<\/td>\n \n 4,250 hours<\/span><\/p>\n<\/td>\n \n Actual worked hours<\/span><\/p>\n<\/td>\n \n 4,300 MH<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required: (a) <\/span>Spending variance<\/span>; (b) <\/span>Efficiency variance<\/span>; (c) <\/span>Capacity variance <\/span><\/p>\n [Answer: (a) $1,200 U; (b) $800 U; (c) $15,000 U]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 16<\/span><\/b><\/p>\n The flexible budgeting data regarding Sun Power (P) Ltd are presented below:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n \n Budgeting Formula<\/span><\/p>\n<\/td>\n \n = Fixed cost +<\/span> (VCPU \u00d7<\/span> Level of activity)<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n = 600,000 \u00a0\u00a0 +<\/span> $15 per DLH \u00d7<\/span> Hours worked<\/span><\/p>\n<\/td>\n<\/tr>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Other data<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Normal capacity<\/span><\/p>\n<\/td>\n \n 60,000 hours<\/span><\/p>\n<\/td>\n<\/tr>\n \n Actual hours worked (DLH)<\/span><\/p>\n<\/td>\n \n 64,000 hours<\/span><\/p>\n<\/td>\n<\/tr>\n \n Standard hours produced<\/span><\/p>\n<\/td>\n \n 56,000 hours<\/span><\/p>\n<\/td>\n<\/tr>\n \n Actual expenses incurred <\/span><\/p>\n<\/td>\n \n $13,50,000<\/span><\/p>\n<\/td>\n<\/tr>\n <\/p>\n \u00a0<\/td>\n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n <\/tbody>\n<\/table>\n Required: (a) <\/span>Spending variance<\/span>; (b) <\/span>Efficiency variance<\/span>; (c) <\/span>Capacity variance <\/span><\/p>\n [Answer: (a) ($210,000) F; (b) $120,000 U; (c) $40,000 U]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 17<\/span><\/b><\/p>\n The extracted data is given below by Eshna Exports (P) Ltd:<\/span><\/p>\n\n\n\n\n\n\n\n \n Details <\/span><\/i><\/p>\n<\/td>\n \n Budgeted\/Standard<\/span><\/i><\/p>\n<\/td>\n \n Actual<\/span><\/i><\/p>\n<\/td>\n<\/tr>\n \n Output (quantity or yield) <\/span><\/p>\n<\/td>\n \n 12,000 units <\/span><\/p>\n<\/td>\n \n 15,000 units <\/span><\/p>\n<\/td>\n<\/tr>\n \n Machine hours (MH)<\/span><\/p>\n<\/td>\n \n 6,000 hours <\/span><\/p>\n<\/td>\n \n 7,000 hours <\/span><\/p>\n<\/td>\n<\/tr>\n \n Fixed overhead <\/span><\/p>\n<\/td>\n \n $180,000<\/span><\/p>\n<\/td>\n \n $200,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Variable overhead <\/span><\/p>\n<\/td>\n \n $360,000<\/span><\/p>\n<\/td>\n \n $450,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Normal output 6,000 hours <\/span><\/p>\n Required: (a) <\/span>Spending variance<\/span>; (b) <\/span>Efficiency variance<\/span>; (c) <\/span>Capacity variance <\/span><\/p>\n [Answer: (a) $50,000 U; (b) ($30,000) F; (c) ($45,000) F]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 18<\/span><\/b><\/p>\n Vipul Company Ltd operates the standard costing system and showed following data for overhead:<\/span><\/p>\n\n\n\n\n\n\n\n\n \n Normal capacity and actual worked hours<\/span><\/p>\n<\/td>\n \n 10,000 DLH<\/span><\/p>\n<\/td>\n<\/tr>\n \n Standard output per direct labour hour<\/span><\/p>\n<\/td>\n \n 4 units <\/span><\/p>\n<\/td>\n<\/tr>\n \n Actual production<\/span><\/p>\n<\/td>\n \n 44,000 units <\/span><\/p>\n<\/td>\n<\/tr>\n \n Actual overhead incurred<\/span><\/p>\n<\/td>\n \n $95,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Factory overhead<\/span><\/p>\n<\/td>\n \n $40,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Standard variable cost per unit<\/span><\/p>\n<\/td>\n \n $6 per hour <\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required: Calculate three variances<\/span><\/p>\n [Answer: SV = (5,000) F; EV = (6,000) F; CV = (4,000) F]<\/span><\/i><\/p>\n * SQ = Actual output \u00d7 (Standard hours \u00f7 Standard output) = 11,000 hours]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 19<\/span><\/b><\/p>\n DK Company has following extracted information related to variances:<\/span><\/p>\n\n\n\n\n\n\n \n Normal output<\/span><\/p>\n<\/td>\n \n 20,000 units <\/span><\/p>\n<\/td>\n \n Actual output<\/span><\/p>\n<\/td>\n \n 4,200 units <\/span><\/p>\n<\/td>\n<\/tr>\n \n Standard fixed cost<\/span><\/p>\n<\/td>\n \n $80,000 <\/span><\/p>\n<\/td>\n \n Actual worked hours<\/span><\/p>\n<\/td>\n \n 2,080 hours <\/span><\/p>\n<\/td>\n<\/tr>\n \n Total cost per unit<\/span><\/p>\n<\/td>\n \n $100<\/span><\/p>\n<\/td>\n \n Actual fixed cost<\/span><\/p>\n<\/td>\n \n $100,000<\/span><\/p>\n<\/td>\n<\/tr>\n \n Standard output per hour<\/span><\/p>\n<\/td>\n \n 2 units <\/span><\/p>\n<\/td>\n \n Actual variable cost<\/span><\/p>\n<\/td>\n \n $108,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required: (a) <\/span>Spending variance<\/span>; (b) <\/span>Efficiency variance<\/span>; (c) <\/span>Capacity variance <\/span><\/p>\n [Answer: SV = 3,200 U; EV = (1,200) F; CV = (4,000) F]<\/span><\/i><\/p>\n * SQ = 4200 \u00d7 1 \u00f7 2 = 2,100 hours; *VCPU = 100 \u2013 40 = 60]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n \u00a0<\/span><\/b><\/p>\n BUDGETED ALLOWANCE<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n DQ: 20<\/span><\/b><\/p>\n The repair and maintenance expenses of a workshop along with operating machine hours are as follows:<\/span><\/p>\n\n\n\n\n\n\n\n\n \n Machine hours<\/span><\/p>\n<\/td>\n \n Repair and maintenance expenses ($)<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n 150<\/span><\/p>\n<\/td>\n \n 350<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n 250<\/span><\/p>\n<\/td>\n \n 450<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n 350<\/span><\/p>\n<\/td>\n \n 550<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n 450<\/span><\/p>\n<\/td>\n \n 650<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n 550<\/span><\/p>\n<\/td>\n \n 750<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required: (a) Variable cost per machine hours; (b) Fixed cost of the workshop<\/span><\/p>\n (c) Estimated repair and maintenance for 475 operating machine hours by using y = a + bx<\/span><\/p>\n [Answer: (1) VCPU = $1; (2) Fixed cost = $200; (3) Total cost = $675]<\/span><\/i><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Analytical Questions<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n AQ: 1 <\/span><\/b><\/p>\n JB Flour Mill makes different products from wheat. Following data are related to product suji<\/i> for one month production:<\/span><\/p>\n\n\n\n\n\n\n\n\n \n Particulars \/Output in kg <\/span><\/i>\u2192<\/span><\/i><\/i><\/p>\n<\/td>\n \n 15,000 kg<\/span><\/i><\/p>\n<\/td>\n \n 20,000 kg<\/span><\/i><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Direct materials<\/span><\/p>\n<\/td>\n \n $300,000<\/span><\/p>\n<\/td>\n \n $400,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Direct labour<\/span><\/p>\n<\/td>\n \n $90,000<\/span><\/p>\n<\/td>\n \n $120,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Production overhead\u00a0\u00a0 (50% of direct labour)<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n \u2013<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Depreciation <\/span><\/p>\n<\/td>\n \n $20,000<\/span><\/p>\n<\/td>\n \n $20,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Repairs and maintenance <\/span><\/p>\n<\/td>\n \n $26,000<\/span><\/p>\n<\/td>\n \n $32,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Selling price per kg $40<\/span><\/p>\n Required: (1) Flexible budget for 10,000 kg and 25,000 kg showing total cost and profit <\/span><\/p>\n (2) Explain is short any three advantages of flexible budget.<\/span><\/p>\n [Answer: (1) FC = $28,000; Total cost = $330,000 and $783,000;<\/span><\/i><\/p>\n Profit = $70,000 and $217,000]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n AQ: 2<\/span><\/b><\/p>\n ABC Manufacturing Company currently is working at 60% capacity for 6,000 units; other data are:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n Particulars <\/span><\/p>\n<\/td>\n \n 50%<\/span><\/p>\n<\/td>\n \n 60%<\/span><\/p>\n<\/td>\n \n 70%<\/span><\/p>\n<\/td>\n<\/tr>\n \n Variable cost:<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Indirect materials <\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 300,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Indirect labour <\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 180,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Semi-variable cost:<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Power and electricity (40% fixed)<\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 90,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Production expenses\u00a0 (70% fixed, 30% variable)<\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 240,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Repair and maintenance (20% variable)<\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 30,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Fixed cost:<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Depreciation <\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 165,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Administrative <\/b><\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 150,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Total <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n \n 11,55,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required: (for 50%; 60% and 70% capacity)<\/span><\/p>\n Flexible budget showing variable cost and fixed cost <\/span><\/p>\n Total cost per unit <\/span><\/p>\n [Answer: (1) VC = $510,000; $612,000 and $714,000; FC = $543,000;<\/span><\/i><\/p>\n \u00a0(2) Cost per unit = $210.60; $179.57]<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n Here, Amount = Rs = $ = \u00a3 = \u20ac = <\/span>\u20b9<\/span> = Af = <\/span>\u09f3 <\/span>= Nu = Rf = <\/span>\u0dbb\u0dd4<\/span> = Br = P = Birr = Currency of your country<\/span>\u00a0 <\/span><\/p>\n AQ: 3<\/span><\/b><\/p>\n SK Food Industries has given data for current month: <\/span><\/p>\n\n\n\n\n\n\n\n\n\n \n Activities <\/span><\/i><\/p>\n<\/td>\n \n Variable cost per unit ($)<\/span><\/i><\/p>\n<\/td>\n \n Fixed cost ($)<\/span><\/i><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Revenue <\/span><\/p>\n<\/td>\n \n 100<\/span><\/p>\n<\/td>\n \n \u2212<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Cost of material <\/span><\/p>\n<\/td>\n \n 35<\/span><\/p>\n<\/td>\n \n \u2212<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Wages and salary<\/span><\/p>\n<\/td>\n \n \u2212<\/span><\/p>\n<\/td>\n \n 100,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Office expenses <\/span><\/p>\n<\/td>\n \n 3<\/span><\/p>\n<\/td>\n \n 10,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Rent <\/span><\/p>\n<\/td>\n \n \u2212<\/span><\/p>\n<\/td>\n \n 50,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Sundry expenses\u00a0 <\/span><\/p>\n<\/td>\n \n 5<\/span><\/p>\n<\/td>\n \n 15,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \u00a0<\/span><\/p>\n Actual Income Statement information for 9000 units\u00a0 <\/i><\/span><\/p>\n\n\n\n\n\n\n\n\n\n \n Particulars <\/span><\/i><\/p>\n<\/td>\n \n Amount ($)<\/span><\/i><\/p>\n<\/td>\n \n \u00a0<\/span><\/i><\/p>\n<\/td>\n<\/tr>\n \n Revenue<\/span><\/p>\n<\/td>\n \n 750,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Cost of material<\/span><\/p>\n<\/td>\n \n 350,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Wages and salary<\/span><\/p>\n<\/td>\n \n 100,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Office expenses<\/span><\/p>\n<\/td>\n \n 30,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Rent<\/span><\/p>\n<\/td>\n \n 50,000<\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n \n Sundry expenses <\/span><\/p>\n<\/td>\n \n 60,000\u00a0 <\/span><\/p>\n<\/td>\n \n \u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Required: (1) Planning income statement for 10,000 units; (2) Flexible income statement for 9,000 units <\/span><\/p>\n (3) Flexible income statement for performance report <\/span><\/p>\n \u00a0[Answer: (1) Net income: Planning = $395,000; (2) Flexible = $338,000;<\/span><\/i><\/p>\n (3) Sales = ($150,000) U; Total expenses = ($28,000) U; Net loss = ($178,000) U<\/span><\/i><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n EP <\/span>Online <\/span>Study <\/span><\/p>\n Thank you for investing your time.<\/span><\/i><\/p>\n Please comment on the article <\/span><\/i>and<\/span><\/i> share this post on your social media platform.<\/span><\/i><\/p>\n \u00a0<\/span><\/p>\n Jay G<\/span>o<\/span>o<\/span>g<\/span>l<\/span>e<\/span>, Jay YouTube<\/span>, Jay Social Media<\/span><\/span><\/p>\n \u091c\u092f<\/span> \u0917\u0942<\/span>\u0917<\/span>\u0932<\/span>.<\/span> \u091c\u092f<\/span> \u092f\u0941\u091f\u094d\u092f\u0941\u092c<\/span>,<\/span> \u091c\u092f<\/span> \u0938\u094b\u0936\u0932<\/span> \u092e\u0940\u0921\u093f\u092f\u093e <\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"   \u00a0 Flexible Budget Budget which is changed according to level of activities is known flexible budgeting. It gives different budgeted cost for different level of activities. A flexible budget is prepared after making difference classification of all the expenses. They are fixed cost, variable cost and semi-variable cost. \u00a0 Methods of flexible budget Tabular […]<\/p>\n","protected":false},"author":19997,"featured_media":6159,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2306,3181,11],"tags":[3206,3186,3211,3212,3203,3196],"writers":[144],"yoast_head":"\n