Budgeting Example 2

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  1. Avatar of m1n2b3v m1n2b3v says:
    May 12, 2013 at 6:54 am

    lecturer.
    i feel sorry for you and you might send your students to TIME OUT for not remembering the term CONTRIBUTION………..even i named the term when you asked…………

  2. Avatar of nakeshia nakeshia says:
    February 21, 2013 at 1:41 am

    I have a question.

    QT co. Manufactures a single product and an extract from their flexed budget for production costs is as follows.
    80%. 90%
    Direct material. 2400. 2700
    Labour. 2120. 2160
    Production o/h. 4060. 4080

    What would the total production cost allowance be in a budget flexed at the 83% level of activity?

    I keep on getting 7121.4 which is wrong. Any help plz???????

    • Avatar of johnmoffat johnmoffat says:
      May 12, 2013 at 10:10 am

      You need to us high/low because some of the costs are variable and some of the costs are fixed.

      The total cost for 80% is 2400 + 2120 + 4060 = 8580
      The total cost for 90% is 2700 + 2160 + 4080 = 8940

      So, the variable cost for 10% is 8940 – 8580 = 360.
      So the variable cost for 3% (83% – 80%) is 3/10 x 360 = 108

      So the total cost for 83% is 8580 (the cost for 80%) + 108 (the extra variable cost for the extra 3%) = 8688.
      (there is obviously no extra fixed cost for the extra 3%)

  3. Avatar of farhanali403 farhanali403 says:
    December 19, 2012 at 5:54 pm

    amazing………hats off

  4. Avatar of far3821 far3821 says:
    December 9, 2012 at 4:30 am

    Very well explained. Thanks opentuition.com

  5. Avatar of onican onican says:
    December 6, 2012 at 3:40 pm

    Thanks a million.

  6. Avatar of tgk4 tgk4 says:
    November 29, 2012 at 5:15 am

    bless you……

  7. Avatar of accakeisha accakeisha says:
    October 11, 2012 at 4:23 pm

    feels like a day at the spa…..sipping on some coconut water…………….REJUVENATING!!!!!thx OT!!

  8. Avatar of adejumolu adejumolu says:
    September 24, 2012 at 2:21 pm

    This is very good. i enjoyed it. God bless this teacher.

  9. Avatar of NOKINOKI NOKINOKI says:
    July 13, 2012 at 7:25 pm

    cannot find video for example 2b, please assist

  10. Avatar of reisha reisha says:
    June 23, 2012 at 2:52 am

    thanks, great job!

  11. Avatar of tenny tenny says:
    June 4, 2012 at 1:17 pm

    Good

  12. Avatar of lduvalier lduvalier says:
    March 26, 2012 at 9:36 pm

    cleared up a whole lot of things. very good.

  13. Avatar of cherylcheeseman cherylcheeseman says:
    November 17, 2011 at 4:04 pm

    I cannot see this lecture. Is this meant to be audio.

  14. Avatar of adriantr adriantr says:
    February 16, 2011 at 6:14 pm

    good

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