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Hi
I am trying to solve budgeting question it is in BPP study text, page 486 Mcdreamy question- it says prepare flexible budget statement on the assumption that the company operates at 85% of capacity. They have calculated direct material and direct wages cost per unit by total cost/no of units but when they are calculating production overhead they are taking off from one year to another year the then difference is dividing with current year number of units. Why is that?I do not have the BPP Study Text (only the Revision Kit) and so I am unable to help you.
(If you are watching my free lectures then you do not really need the Study Text. Far more important is that you have a Revision Kit, because all of the questions there are either past exam questions or are exam-standard questions)
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