3. ABB Inc. manufactures two products, Flak and Chrn. 15,000 units of Flak and 10,000 units...

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3. ABB Inc. manufactures two products, Flak and Chrn. 15,000 units of Flak and 10,000 units of Chrn were made and sold this year at £15 and £20 selling price per unit respectively. ABB predicts an increase in demand by 20% for Flak and by 10% for Chrn next year with selling prices remaining constant. Further information based on prediction are given below: Product Product Flak Product Chrn £ £ Per unit: Material cost 2 2 Labour 5 8 Per batch: Production scheduling 800 800 Purchasing 650 480 Machine set-up 250 250 Per year: 4,800 3,800 Quality control Design 1,000 400 Another activity that occurs in making the products is material scheduling which is estimated at a rate of 5% of the estimated selling price. Product Flak is usually made in batches of 200 and Product Chrn is made in batches of 100. a. Prepare an activity-based budget for next year. [12 marks] b. In no more than 200 words discuss the differences between activity-based budgeting and zero-based budgeting. [8 marks] [total - 20 marks] 3. ABB Inc. manufactures two products, Flak and Chrn. 15,000 units of Flak and 10,000 units of Chrn were made and sold this year at £15 and £20 selling price per unit respectively. ABB predicts an increase in demand by 20% for Flak and by 10% for Chrn next year with selling prices remaining constant. Further information based on prediction are given below: Product Product Flak Product Chrn £ £ Per unit: Material cost 2 2 Labour 5 8 Per batch: Production scheduling 800 800 Purchasing 650 480 Machine set-up 250 250 Per year: 4,800 3,800 Quality control Design 1,000 400 Another activity that occurs in making the products is material scheduling which is estimated at a rate of 5% of the estimated selling price. Product Flak is usually made in batches of 200 and Product Chrn is made in batches of 100. a. Prepare an activity-based budget for next year. [12 marks] b. In no more than 200 words discuss the differences between activity-based budgeting and zero-based budgeting. [8 marks] [total - 20 marks]

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Lets solve Product unit total non of batch Flak chrn Material cost flak18000 Chrn 11000 36000 22000 ... View the full answer