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The following budgeted information comes from the accounting records of Smith
original budget
sales units 1,000
$
sales revenue 100,000
Direct material 40,000
Direct labour 20,000
Variable overhead 15,000
Fixed overhead 10,000In a period where the actual sales were 1,200 units, what would be the budgeted flexed profit?
Please, kindly help on this question as i do not see production units like your examples.
Since there is no mention of inventories in the original budget, you assume that the level of production will always be equal to the level of sales.
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