Budgeting (BPP Kit Questions 16.9/16.10)

"someone" is always going to beam if you ask in the Ask the Tutor Forum, because I am the tutor :-) Question 1: If there had not been defectives then the production would have been 18,000 + 11,400 - 15,000 = 14,400 Therefore the actual production budget must be 14,400 / 0.9 = 16,000 (The inventories had already passed the check)

For every 100 hours that they pay for, only 80 hours are actually worked. So putting it the other way round, for every 80 hours that they work there are are 20 hours idle, which is 20/80 or 25% idle :-) Hope that helps :-)

Question 1: The 14,400 is after having 10% defective. So the 14,400 is the remaining 90% Question 2: It is quite a common occurrence in the exam I am afraid :-)

You are welcome :-)

The 1st and 2nd questions I didn't get the answers pls explain hw

But I have explained the answers in my replies above.