Question 2

Flexible Budgets and Variances

1.The following information relates ABC Table Ltd, a manufacturer of tables for colleges for 2018:

Budget

Sales 44,000 units at 57 per table

Variable cost 35 per unit

Fixed costs 660,000

Actual

Sales 46,000 units at 55 each

Variable costs 37 per unit

Fixed cost 680,000

Net Profit 148,000

Required:

How to prepare a Budgetary Control Statement, in a marginal costing format, showing the original fixed budget, the flexible budget, the actual results and the variances.