C4- 1.
One company has prepared the following monthly flexible budgets.
|
Activity level (units)
|
10,000
|
20,000
|
|
|
$
|
$
|
|
Sales revenue
|
200,000
|
400,000
|
|
Material cost
|
60,000
|
120,000
|
|
Finance cost
|
70,000
|
130,000
|
|
Management expense
|
30,000
|
46,000
|
|
Production expense
|
12,000
|
24,000
|
|
Selling cost
|
20,000
|
28,000
|
|
Total cost
|
192,000
|
348,000
|
|
Profit
|
8,000
|
52,000
|
The actual data is as follow:
|
|
$
|
|
Sales revenue
|
355,000
|
|
Material cost
|
109,000
|
|
Finance cost
|
120,000
|
|
Management expense
|
41,200
|
|
Production expense
|
20,600
|
|
Selling cost
|
25,000
|
|
Total cost
|
315,800
|
|
Profit
|
39,200
|
Required:
Prepare the flexed budget.
|
