I read the examiner answer but I don’t understand how to calculate flexed budget figure .
Sales valume 270000
Sales revenue 40500
Direct materials 17550
Direct labour 3780
Please show me the calculation with breakdown
Thanx in advance
Sales revenue, materials and labour are simply flexed from the original budget of 243,000 to 270,000 by multiplying each by 270/243.
Fixed costs are not flexed because they should not vary with sales volume.
Thank you very much. My problem is solved
The topic ‘September/December question 3 requirement a’ is closed to new replies.