Example 1, chapter 3

This topic has 1 reply, 2 voices, and was last updated 7 years ago by Ken Garrett.

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October 19, 2018 at 8:04 pm #479235
Roxana
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Hi,

Why the labour and fixed expenses have been changed in the flexed budget compared with the actual budget and how were calculated?

Thank you.
October 19, 2018 at 9:58 pm #479247
Ken Garrett
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From the budget, labour is 2.50 per unit made (25000/10000)

If 12,000 are made, the expected labour cost is therefore 12000 x 2.50 = 30,000, the flexed amount.

The fixed overheads have not been flexed.
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