Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. The following is the details of the cost at 80% capacity of Aaron company. It is expected that the company can produce 35,000 units

image text in transcribed

3. The following is the details of the cost at 80% capacity of Aaron company. It is expected that the company can produce 35,000 units in 3 months which represents 90% of the capacity. Supplies OMR 1400 Power OMR 7000 Insurance OMR 4200 OMR 4900 Maintenance Depreciation Supervision OMR 18,000 OMR 57,000 Total costs OMR 92,500 Units produced at 70% capacity 17,500 From the above table the first four costs are completely variable and the remaining are fixed. Prepare a flexible budget for 80% and 90% capacity. (2 Marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: John Stittle, Robert Wearing

1st Edition

1412935024, 9781412935029

More Books

Students also viewed these Accounting questions