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P3 pilot paper q.3b on budget

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › P3 pilot paper q.3b on budget

  • This topic has 1 reply, 2 voices, and was last updated 14 years ago by Ken Garrett.
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  • June 10, 2011 at 11:44 pm #49083
    raj86
    Member
    • Topics: 1
    • Replies: 1
    • ☆

    Hi, please can u help me understand how the flexed budget is calculated in this new question. I am looking at the solution and cannot understand how the new figure for labour and raw materials was calculated – please please help. Thanks Gromit.

    June 11, 2011 at 4:41 pm #84598
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10591
    • ☆☆☆☆☆

    Flex to production units.

    Material: std cost/unit = 350 = 29,050/83
    Flexed material is 50 x 370 = 17,500

    Labout: std = 325 = 26,975/83
    Flexed labour is 50 x 325 = 16,250.

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