Question
based on the given production budget by the company, analyze the use of different planning tools and their application for preparing and forecasting such budget
based on the given production budget by the company, analyze the use of different planning tools and their application for preparing and forecasting such budget for next month.
The company's production budget for the month of December 2020.
|
| Original budget 1/12 | Actual figures 30/12 |
| Output | 1,000 units | 900 units |
|
| ||
| Sales revenue | 100,000 | 90,000 |
| Raw material | 40000 (4000 meters) | 37000 (3700meters) |
| Labour | 20000 (5000 hours) | 17575 (4750 hours) |
| Fixed overhead | 20,000 | 20,000 |
| Operating profit | 20,000 | 15,425 |
topic 1:
topic2:
Topic 3 :
|
| Cost/unit | Original budget 1/12 | Actual figures 30/12 | Variance | Effect |
| Output |
| 1,000 units | 900 units |
|
|
|
|
|
|
| ||
| Sales revenue |
| 100,000 | 90,000 |
|
|
| Raw material |
| 40000 (4000 meters) | 37000 (3700meters) |
|
|
| Labour |
| 20000 (5000 hours) | 17575 (4750 hours) |
|
|
| Fixed overhead |
| 20,000 | 20,000 |
|
|
| Operating profit |
| 20,000 | 15,425 |
|
|
|
| flexible budget 1/12 | Actual figures 30/12 | Variance | Effect |
| Output |
| 900 units |
|
|
|
|
|
|
| |
| Sales revenue |
| 90,000 |
|
|
| Raw material |
| 37000 (3700meters) |
|
|
| Labour |
| 17575 (4750 hours) |
|
|
| Fixed overhead |
| 20,000 |
|
|
| Operating profit |
| 15,425 |
|
|
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Counting The Cost Financial Decision Making Discipleship And Christian Living
Authors: Clemens Sedmak, Kelli Reagan Hickey
1st Edition
0814669336, 978-0814669334
