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Part 4 Flexible budget and variance (15 marks) The fixed budget and actual results for J Ltd for the latest period are as follows. Production
Part 4 Flexible budget and variance (15 marks)
The fixed budget and actual results for J Ltd for the latest period are as follows.
Production and sales
Direct material Direct labour Variable overhead Fixed overhead Total cost
Sales revenue Profit
Required
Budget 4,000 units ($)
72,000 84,000
48,000 67,200
271,200 384,000 112,800
Actual 4,640 units ($)
87,360 101,280 52,800
72,000 313,440 448,320
- 134,880 flexible budget control report for the period, identifying the cost and revenue variances. (10 marks)
- (2)Comment on this statement (5 marks):
- The budgetary planning process for a manufacturing and trading organisation should always begin with the preparation of the sales budget.
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