Saffura Sdn. Bhd. manager asked you to provide flexible budget for the company. Below is the...

 

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Saffura Sdn. Bhd. manager asked you to provide flexible budget for the company. Below is the information of the company: (i) Budgeted unit at 75% is 15,000 units. Budgeted selling price per unit is RM27.00. Actual selling price per unit is RM25.00. Below is the information on the budgeted costs at 60% and 70%. (iv) Level of production (%) Raw material Labour Administrative expenses Overhead Other operating expenses 60% 90,000 60,000 45,000 36,000 24,000 70% 105,000 70,000 52,500 42,000 28,000 (v) The actual costs of the company for the year ended 2010 are as follow: 80% 121,600 78,400 59,200 48,000 28,800 Raw material Labour Items Administrative expenses Overhead Other operating expenses You are required to prepare: (a) Flexible budget for 80% and 90% level of production. (b) Performance report for the year ended 2010 (show the variance). Saffura Sdn. Bhd. manager asked you to provide flexible budget for the company. Below is the information of the company: (i) Budgeted unit at 75% is 15,000 units. Budgeted selling price per unit is RM27.00. Actual selling price per unit is RM25.00. Below is the information on the budgeted costs at 60% and 70%. (iv) Level of production (%) Raw material Labour Administrative expenses Overhead Other operating expenses 60% 90,000 60,000 45,000 36,000 24,000 70% 105,000 70,000 52,500 42,000 28,000 (v) The actual costs of the company for the year ended 2010 are as follow: 80% 121,600 78,400 59,200 48,000 28,800 Raw material Labour Items Administrative expenses Overhead Other operating expenses You are required to prepare: (a) Flexible budget for 80% and 90% level of production. (b) Performance report for the year ended 2010 (show the variance).

Answer rating: 100% (QA)

Answer To prepare a flexible budget for Saffura Sdn Bhd we need to calculate the budgeted costs at different production levels and then compare them with the actual results The flexible budget will al... View the full answer