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May i know why using actual number of students to calculate budgeted costs?
For eg: tuition materials 720000/8000×7200 instead of 720000/8000×6900Thanks~
When you are calculating variances (or comparing actual to budget) for variable costs it is normal to flex the budget to the actual activity level.
There is little point calculating the costs based on budgeted numbers of students if the actual number is higher as higher numbers will inevitably push up the variable costs.
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