Q3. ABC Ltd. is preparing a budget for 2015. Following are the information related with budget preparation: (1.5 Mark) Budgeted selling price per unit $150 per unit Total fixed costs $80,000 Variable costs $50 per unit Required: Prepare flexible budget for 1,200, 1,400, 1,600 and 1,800 units. Answer: Q4. Explain with suitable examples why the support department costs are allocated to operating department? Briefly explain any one method of such allocation with numerical examples. (1 Mark)