Please answer the below questions and support your answer with referencing and text citations and provide the calculations formulas, please.

Q1. Explain how static budget failed to analyze cost and revenues variances and how flexible budget has overcome static budgets' deficiencies and explain how does the flexible budget actually work?

Q2. Hamed Company is preparing budgets for the quarter ending June 30, 2019.

Budgeted sales in units for the next five months are:

April May June July

20,000 50,000 30,000 25,000

Required:

a.Sales budget summary for April, May & June assuming the selling price per unit is SR 15.

b.Production budget summary for April, May & June if the company wishes to end inventory as 10 % of next month's sales units.

Q3. Oraby Industries is a division of a major corporation. Last year the division had total sales of SAR 23,380,000, an operating income of SAR 2,828,980, and invested assets of SAR 10,000,000.

Required:

a. What is the division's profit margin?

b. What is the division's investment turnover?

c. What is the division's return on investment (ROI) using the DuPont formula?

d. What is the residual income if investors require a minimum return of20%?

Q4. Taha Company produces joint three products: Product A, Product B, and Product C.

During the year, joint costs of processing the three products were SAR400, 000.The following information was given to you as follows:

Product Units Produced Selling price per unit Expenses perunit after Selling price per unit

at split-off point(SR) split-off point ( (SR) after split-off point(SR)

A 400,000 20 20 40

B 400,000 18 15 28

C 800,000 12 14 17

Required:

a.Allocate the joint costs using the physical output method.

b.Allocate the joint costs using the net realizable value method.

c. Allocate the joint costs using sales value at the split-off point method.