Chimes Limited has prepared a flexible budget for one of its factories for the year to 30

Question:

Chimes Limited has prepared a flexible budget for one of its factories for the year to 30 June 2017. The details are as follows: 

Additional information:

1 The company only expects to operate at a capacity of 45 percent. At that capacity, the sales revenue has been budgeted at a level of £135,500.

2 Variable costs per unit are not expected to change, irrespective of the level of activity.

3 Fixed costs are also not likely to change, irrespective of the level of activity.


Required:

Prepare a flexible budget for the year to 30 June 2017 based on an activity level of 45 percent.

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Related Book For  book-img-for-question

Accounting For Non-Accounting Students

ISBN: 9781292128979

9th Edition

Authors: John R. Dyson, Ellie Franklin

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