Emily Thompson

can some one plz explain to me how exactly you calculate a flexible budget from the information given e.g

XYZ company produces product X and the folowing relates to their standard cost card

direct material $8.40
direct labour $7.60
variable overhead $3.90
fixed overhead $5.10
____
25.00

fixed overhead charged to each unit of the product is bases on a monthly production of 2000 units

the following budgetary control statement was made

flexed budget actual cost variance
$ $
direct material 18060 18100 ?
direct labour ? 14980
variable overhead 8358 8160 ?
fixed overhead ? 9950


can someone plz explain how to calculate the flexed budget so as to fill in the missing figures?

mock exam is next wk thur

quyet

I think it is basic knowledge

Originally Posted by Emily Thompson

can some one plz explain to me how exactly you calculate a flexible budget from the information given e.g XYZ company produces product X and the folowing relates to their standard cost card direct material $8.40 direct labour $7.60 variable overhead $3.90 fixed overhead $5.10 ____ 25.00 fixed overhead charged to each unit of the product is bases on a monthly production of 2000 units the following budgetary control statement was made flexed budget actual cost variance $ $ direct material 18060 18100 (18060 - 18100) (A) direct labour (18960/8.4)*7.6 14980 variable overhead 8358 8160 (8358 - 8160) (F) fixed overhead 5.1*2000 9950 can someone plz explain how to calculate the flexed budget so as to fill in the missing figures? mock exam is next wk thur

Emily Thompson

thanks quyet but i was hoping for someone to explain to me how to calculate the flexible budget for that question since i can't seem to figure it out.

quyet

It is not difficult.

You only remember. Flexible budget have actual quantity (units) but still budget quality (price)

Don't hesitate to ask if u have any