Can someone help me with budgeting practice assesment 1 task 3 and b please thank you

clementina

Can someone help me with budgeting task 3 and b please thank you I'm confused thank you

Kkadijat

*1 Sales revenue: £1377000- (£1281600/178000*192000)
£1377000Actual- £1382400 Flexed =5400 Adverse

*2 Materials: 500100-(flexed:462800/178000*192000)
£500100Actual- £499200Flexed= 900Adverse

*3 Labour: £516500-(480600/178000*192000)
£516500Actual-£518400= 1900Fav

*4 Distribution: £74200-(67640/178000*192000)
£74200Actual-£72960Flexed = 1240Adverse

*5 Energy: £65080-(£60860-£12800/17800*192000)+££12800
=£65080-(£48060/178000*192000)+£12800
£65080Actual-£64640Flexed=440Adverse
*6 Equipment:
ACTUAL:
178000units/30000 budgeted increase units=5.93......
30000*5 =150000
.93... = 30000 (any additional unit)
EQUAL 180000 ACTUAL UNITS

BUDGET:
192000units/30000 budgeted increase units =6.4
30000*6 = 180000
.4 = 30000
EQUAL 210000 BUDGETED UNITS

SO £28600-( £24000/180000*210000)
£28600-£28000 FLEXED BUDGET =600ADVERSE

NOTE: You can just round up the answer you get from dividing the ACTUAL & BUDGETED UNITS BY BUDGETED INCREASE IN UNITS to the nearest whole number.
ie 192000units/30000= 7 and then MULTIPLY it by the BUDGETED INCREASE UNITS 30000 (7*30000 = 210000 as calculated above for BUDGETED UNITS).

ADD all COSTS FAVS and DEDUCT all ADVERSES
1900+100+780 -(900A+1240A+440A+600A+900A)
=2780F-4080A = -1300

FLEXED ACTUAL VARIANCE
Sales revenue 1382400 1377000 -5400
TOTAL 1295600 1296900 -1300
please see above workings for FLEXED and ACTUAL figures
OPERATING PROFIT/LOSS 86800 80100 -6700


HOPE THIS HELPS

Kkadijat

HI

Sorry the above is for practice assessment 1 task 7