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paper was avg ..! it was to lenghty ..! at middle i did messed around .. hop for da best (finger crossed )
The following monthly budgeted cost values have been taken from the budget working papers
of MZ Limited for the year ended 30 September 20X8.Activity level
$ $ $60 % 70% 80 %
Direct materials 30,000 35,000 40000
Direct labour 40,500 47,250 54,000
Production OH 46,000 52,000 58,000
Selling overhead 15,000 17,000 19,000
AdministrationOH 28,000 28000 28000
total ______ _____ _____
159500 179250 19900
_____ ______ ______
During September 20X8, actual activity was 1,292 units (which was equal to 68% activity) and
actual costs were:
Direct materials 33,500
Direct labour 44,000
Production overhead 46,250
Selling overhead 16,150
Administration overhead 27800
total ___________
167,700
Required:
(a) Prepare a budgetary control statement for MZ Limited on a flexible budget basis for
the month of September 20X8. The statement should include the flexed budget, the
actual results and the variance for each of the five costs. (12 marks)
(b) Explain the difference between fixed and flexible budgets, and state when each
should be used to control costs.
pls help .. i find frm ur lectures fixed n flexed are so easy .. but this is question is annoyin me .. i dun no how to deal wid this ..!!