prepare a flexible budget statement for month of

jun 2019, showing variance for each of the cost items

QUESTION 2 Tiara Enterprise is a small business producing banana crackers located in Sungai Buloh. Each packet of banana crackers requires three types of materials; which classified as Material A, Material B and Material c. The business buys Materials A and B from nearby supplier. However, Material C is not available in Sungai Buloh area, therefore it needs to be ordered from a supplier in Sungkai, Perak. Tiara Enterprise market the product locally in Peninsular Malaysia. Miss Elyn, an account clerk prepared the following production cost budget for the month of June 2019: Production quantity 12,000 15,000 18,000 packets packets packets RM RM RM Direct materials: Material A Material B Material C Direct labour Overhead 3,600 20,000 7,200 7,000 12,400 4,500 24,500 10,000 10,000 12,400 5,400 29,000 11,800 16,000 12,400 Additional Information: 1. Each packet consists of 1 kg banana crackers. 2. Each packet of banana crackers requires 100 grams Material c. It is the policy of supplier in Sungkai to charge an extra RM1,000 for delivery of 1,500 kgs and above. 3. Production workers are paid based on piecework scheme using the following scales: Quantity produced Less than 10,000 10,000 - 15,000 Above 15,000 RM per packet 0.50 1.00 2.00 4. During June 2019, Tiara Enterprise manufactured 16,500 packets banana crackers and incurred the following production costs: L RM Direct materials: Material A Material B Material C Direct labour Overhead 5,500 22,600 10,000 18,900 14,230