You are the clothing costs centre manager of Mbezzels clothing manufacturer. You have been asked to...
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You are the clothing costs centre manager of Mbezzels clothing manufacturer. You have been asked to prepare flexible budget for July 2023 period: The following actual information for June 2023 is available for 4000 units: Details Direct Material Direct Labour Fixed Manufacturing Overheads Fixed marketing and administrative costs Rand Value ● R80 000 R60 000 ● R40 000 R80 000 Variable marketing costs Average selling price per item There is no opening or closing stock expected. The following changes are expected during July 2023: ● Increase in selling price by 20% Variable marketing expenses of R8 per unit . Commission per clothing item sold paid to sales staff. Per Unit R8 R75 Ls Direct materials increase by 10% • Salary increase indirect labour R12 000 • Salary increase sales manager R15 000 Required: Prepare a flexible budget for July 2023 at the following sales levels 5000, 6000 and 7000 units. Budget answers must be presented in a income statement format for each sales level. You are the clothing costs centre manager of Mbezzels clothing manufacturer. You have been asked to prepare flexible budget for July 2023 period: The following actual information for June 2023 is available for 4000 units: Details Direct Material Direct Labour Fixed Manufacturing Overheads Fixed marketing and administrative costs Rand Value ● R80 000 R60 000 ● R40 000 R80 000 Variable marketing costs Average selling price per item There is no opening or closing stock expected. The following changes are expected during July 2023: ● Increase in selling price by 20% Variable marketing expenses of R8 per unit . Commission per clothing item sold paid to sales staff. Per Unit R8 R75 Ls Direct materials increase by 10% • Salary increase indirect labour R12 000 • Salary increase sales manager R15 000 Required: Prepare a flexible budget for July 2023 at the following sales levels 5000, 6000 and 7000 units. Budget answers must be presented in a income statement format for each sales level.
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