Pangkor Bhd produces one uniform product. The assembly department encounters wide fluctuation in activity levels from month to month. However, the following department overhead budget depicts expectations of currently attainable efficiency for an average or normal level of activity of 20,000 units of production per month:

TABLE IN THE PICTURE BELOW

Required :

(1) Prepare a flexible budget statement for 16,000; 20,000 and 24,000 units level of activity, showing the budget formula.

(50 marks

ins Budget Normal month (RM) Actual cost incurred in the month of January 2020 (RM) le Indirect labour (variable) 20,000 19,540 1,000 1,000 Supplies (variable) Power (variable) Repairs (variable) 1,000 980 1,000 880 as al Other variable overhead cost 2,000 1,800 Depreciation (fixed) 10,000 10,000 Other fixed overhead cost 5,000 5,000 din hing 40,000 39,200