Karlsson Pty Ltd, an architectural firm, has budgeted $200 000 in fixed expenses. It has also budgeted
Question:
Karlsson Pty Ltd, an architectural firm, has budgeted $200 000 in fixed expenses.
It has also budgeted variable cost of $50 per architectural drawing sheet (there are 2 sheets per drawing assignment), $180 per drawing assignment for staff architect costs, and $80 per drawing assignment for technological equipment depreciation.
The firm expects revenues from drawings to be $1 200 000, based on 1500 drawings assignments at $800 each.
During the current month, 1600 drawing assignments were actually prepared, at an average fee of $770 each. actual variable costs were $170 000 for drawing sheets, $300 000 for labour and $110 000 for technology depreciation. actual fixed costs were $210 000.
prepare a flexible budget for Karlsson Pty Ltd, for the current month.
