QUESTION 2 (25 MARKS) Alia manufactures sport shoes under the brand name AA Shoes. She takes...

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QUESTION 2 (25 MARKS) Alia manufactures sport shoes under the brand name AA Shoes. She takes orders from various sporting associations according to customized designs and sizes. For the future, Alia predicts sales will increase by 20% from a base of 100,000 units in the current year. The variable costs for the current year are as follows: Materials Direct labour Variable manufacturing overheads The fixed costs are as follows: Depreciation Rentals Supervision salaries RM 300,000 100,000 500,000 RM 10,000 20,000 35,000 Required: i. Based on the information above, prepare a flexible budget statement to show various levels for the next five years. ii. Explain briefly TWO (2) types of budgeting. (20 marks) (5 marks) QUESTION 2 (25 MARKS) Alia manufactures sport shoes under the brand name AA Shoes. She takes orders from various sporting associations according to customized designs and sizes. For the future, Alia predicts sales will increase by 20% from a base of 100,000 units in the current year. The variable costs for the current year are as follows: Materials Direct labour Variable manufacturing overheads The fixed costs are as follows: Depreciation Rentals Supervision salaries RM 300,000 100,000 500,000 RM 10,000 20,000 35,000 Required: i. Based on the information above, prepare a flexible budget statement to show various levels for the next five years. ii. Explain briefly TWO (2) types of budgeting. (20 marks) (5 marks)