The following monthly budgeted cost values have been taken from the budget working papers of Maju Sdn Bhd for the year ended 30 August 2015.

Activity level 60% 70% 80%

RMRMRM

Direct materials 30,000 35,000 40,000

Direct labour 40,500 47,250 54,000

Production overhead 46,000 52,000 58,000

Selling overhead 15,000 17,000 19,000

Administration overhead 28,000 28,000 28,000

159,500179,250199,000

During August 2015, actual activity was 1,292 units (which was equal to 68% activity)

RM

Direct materials 33,500

Direct labour 44,000

Production overhead 46,250

Selling overhead 16,150

Administration overhead 27,800

167,700

Required:

(i)Prepare a budgetary control statement for Maju Sdn. Bhd. on a flexible budget basis for the month of August 2015 . (12 marks)

(ii)Explain the difference between fixed and flexible budgets, and state when each should be used to control costs. (4 marks)

(iii)Briefly explain two (2) budget method that can be use by Maju Sdn Bhd. other than fixed and flexible budgets. (4 marks)