17.1a Denholm Pargeter Limited is an engineering company producing a wide range of component parts for the
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17.1a Denholm Pargeter Limited 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 2013:
Sales: 1200 units £30 per unit 36 000 Direct materials: 1200 units (3 kg £1.20) 4 320 Direct labour: 1200 units (2 hours £8.50) 20 400 Prime cost 24 720 The production manager wishes to assess the change to the budget on the basis that 1300 units are produced and sold.
Required: flex the budget for component XP04/H for 1300 units.
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