Sidney Company Ltd manufactures a single product. Details of the budgeted and actual results are as follows for the month of March 2023:

	Budget	Actual results
Production and sales (units)	2000	3000
	$	$
Sales revenue	20,000	30,000
Direct materials	6,000	8,500
Direct labour	4,000	4,500
Maintenance	1,000	1,400
Depreciation	2,000	2,200
Rent and rates	1,500	1,600
Other costs	3,600	5,000
Total costs	18,100	23,200
Profit	1,900	6,800

i. Direct materials, direct labour and maintenance are variable

ii. Rent and rates and depreciation are fixed costs

iii. Other costs consist of fixed costs of $1,600 plus variable cost of $1 per unit made and sold

You are required to prepare a flexible budget showing the variancefor each line item.

daval jones

To:Daval Jones

Tue, May 2 at 1:51 PM

Sidney Company Ltd manufactures a single product. Details of the budgeted and actual results are as follows for the month of March 2023:

	Budget	Actual results
Production and sales (units)	2000	3000
	$	$
Sales revenue	20,000	30,000
Direct materials	6,000	8,500
Direct labour	4,000	4,500
Maintenance	1,000	1,400
Depreciation	2,000	2,200
Rent and rates	1,500	1,600
Other costs	3,600	5,000
Total costs	18,100	23,200
Profit	1,900	6,800

i. Direct materials, direct labour and maintenance are variable

ii. Rent and rates and depreciation are fixed costs

iii. Other costs consist of fixed costs of $1,600 plus variable cost of $1 per unit made and sold

You are required to prepare a flexible budget showing the variancefor each line item.