Can someone help me with practice assement 1 budgeting task 7 please thank you

Can someone help me with practice assement 1 budgeting task 7 please thank you

Comments

  • Kkadijat
    Kkadijat Registered Posts: 28
    *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

    clementinaButchaenm1976
  • clementina
    clementina Registered Posts: 12
    Thank you
  • Butcha
    Butcha Registered Posts: 4
    I had a problem with Stepped Costs. Thank you for the explanation. Exam on Friday, wish me luck!
  • Kkadijat
    Kkadijat Registered Posts: 28
    Good luck
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