Graffs Sdn. Bhd. produced its budget for the month of August 2020. The information is available...

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Graffs Sdn. Bhd. produced its budget for the month of August 2020. The information is available as follows: Costs 10,000 units 11,000 units 12,000 units RM RM RM Materials 30,000 33,000 36,000 Wages 25,000 27,500 30,000 Depreciation 8,000 8,000 8,000 Power 17,000 18,000 19,000 Salaries 17,000 17,000 17,000 Transportation 16,000 17,500 19,000 The actual units produced during August were 11,600 units. Required: (a) Identify the cost behaviour for each of the costs. (6 marks) (b) Prepare a flexible budget for the actual activity level at 11,600 units for August 2020. (10 marks) (c) If the actual costs for August 2020 were as follows: Materials Wages RM 35,000 33,000 Depreciation 8,000 Power 17,800 Salaries Transportation 17,200 17,600 Prepare a statement showing the variances from the budget in part (b) above for the month. (d) Explain when flexible budgets are appropriate to be used. (6 marks) (3 marks) [Total: 25 marks] Graffs Sdn. Bhd. produced its budget for the month of August 2020. The information is available as follows: Costs 10,000 units 11,000 units 12,000 units RM RM RM Materials 30,000 33,000 36,000 Wages 25,000 27,500 30,000 Depreciation 8,000 8,000 8,000 Power 17,000 18,000 19,000 Salaries 17,000 17,000 17,000 Transportation 16,000 17,500 19,000 The actual units produced during August were 11,600 units. Required: (a) Identify the cost behaviour for each of the costs. (6 marks) (b) Prepare a flexible budget for the actual activity level at 11,600 units for August 2020. (10 marks) (c) If the actual costs for August 2020 were as follows: Materials Wages RM 35,000 33,000 Depreciation 8,000 Power 17,800 Salaries Transportation 17,200 17,600 Prepare a statement showing the variances from the budget in part (b) above for the month. (d) Explain when flexible budgets are appropriate to be used. (6 marks) (3 marks) [Total: 25 marks]

Answer rating: 100% (QA)

a Identify the cost behaviour for each of the costs Materials Variable cost increases along with inc... View the full answer