17.1 Denholm Pargeter Ltd is an engineering company producing a wide range of component parts for the aerospace industry. Its component XP04/H has the following budget sales and prime costs for March 20X9:

£

Sales: 1,200 units @ £30 36,000 Direct materials: 1,200 units 3 (3 kg 3 £1.20) 4,320 Direct labour: 1,200 units 3 (2 hours 3 £8.50) 20,400 Prime cost 24,720 The production manager wishes to assess the change to the budget on the basis that 1,300 units are produced and sold.

Flex the budget for component XP04/H for 1,300 units.