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P3 pilot paper q.3b on budget

This topic has 1 reply, 2 voices, and was last updated 13 years ago by Ken Garrett.

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June 10, 2011 at 11:44 pm #49083
raj86
Member
- Topics: 1
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Hi, please can u help me understand how the flexed budget is calculated in this new question. I am looking at the solution and cannot understand how the new figure for labour and raw materials was calculated – please please help. Thanks Gromit.
June 11, 2011 at 4:41 pm #84598
Ken Garrett
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- Topics: 10
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Flex to production units.
Material: std cost/unit = 350 = 29,050/83
Flexed material is 50 x 370 = 17,500
Labout: std = 325 = 26,975/83
Flexed labour is 50 x 325 = 16,250.
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