Flexible Budgets Theory Practice questions 4 Question 1 V Ltd has following details available for the 1" quarter of 2018. Cost Cost behaviour Fixed budget $ Materials VC 20,000 Labour (production workers) VC 22,500 Direct expenses VC 12,500 Production overheads $5,000 fixed 22,500 Marketing and advertising FC 11,000 Administration FC 13,600 Other overheads $5.50 VPU 21,750 Actual results $ 23,500 26.000 15,600 24,000 11.200 12.700 24.100 - VPU = Variable cost per unit VC= Variable cot FC= Fixed cost The above fixed budget has been prepared for 2,500 units and the company was able produce and sell 3,000 units. Ado Required: 6. Find out the variances between fixed budget and the actual results 7. Prepare a flexible budget 8. Find out the variances between flexible budget and the actual results 9. Comment on the results