budgeting with marginal and absorption costing approach

In Your budgeting video lecture. Marginal costing approach in fixed budget, budget production was 10000 with 10000 fixed overheads budgeted overhead of 10000/budgeted unit of production =1 overhead absorption rate in flexed budget , actual production 12000 but became 10000 overheads in flexed budget.In other words, we do not multiply absorption rate of 1 with actual production unit in marginal costing approach of budget preparation. In Your variance analysis lecture video. Absorption approach in fixed budget, fixed overhead was 130500 based on budgeted production 8700*15(overhead absorption rate) in flexed budget, fixed overhead was 133500 based on actual production of 8900*15(overhead absorption rate)=133500 Did i understand it correct? Thanks in advance

You understood correct. However if a question simply requires a budget then you would always assume fixed costs stayed constant (i.e. a marginal approach). The only reason I prepared a budget using absorption costing in the variance lecture is to make sense of the fixed overhead variances that appear when using absorption costing.

With the assistance of your lecture videos based on budgeting and variance analysis, I finished it eventually. I try to firstly analyse in-depth and then solve questions. Thank you very much billions of times.

You are welcome :-)