Hello sir,
Budget. Actual
Sales 120000. 100000
Sales rev 1200000 995000
Variable printing costs
360000 280000
How do we get the flexed budget figures like 1000 and 300?
Many thanks
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Flexed budget
6y ago#1The budgeted sales price per unit is $1,200,000 / 120,000 = $10 per unit.
Therefore the flexed budget revenue for 100,000 units is 100,000 x $10.
The budgeted variable costs per unit is $360,000 / 120,000 = $3 per unit.
Therefore the flexed budget for 100,000 units is 100,000 x $3.
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Dear sir, for flexed budget, i would like to double confirm
for service industry in order to derive at Std cost, we would flex with 'actual sales unit'
for production industry, we would flex with 'actual production unit'
6y ago#3For a production company we flex the costs with the actual units produced.
For a service company there are no units produced. But depending on the wording of the question we would most likely flex the costs according to the level of sales.
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