TOPIC Budgeting and Variance Analysis ACTIVITY TITLE Calculate the Marginal cost of the firm from the total cost with the help of diagram. ACTIVITY 1. The master (static) budget, flexible budget and Actual The following DIRECTION & information has been gathered: REQUIREMENTS Particulars Master Budget Flexible Budget Actual Results Units sold 1500 1200 1200 Revenue 150000 120000 125000 Direct Material Cost 72000 57600 62160 Direct Labour Cost 19200 19800 Manufacturing Overheads 15000 ? 13050 Total Variable Costs ? ? Contribution Margin ? ? ? Fixed cost 27600 27600 28500 Net Income ? ? As the management accountant of the company prepare the Flexible budget variance, Sales volume variances and the static budget variance. Distinguish between the two broad components of the master budget. 5. IKEA Bahrain manufactures tables for Schools in Bahrain. The master budget is based on sales of 20,000 units at BD100 Per table. Operating income is anticipated to be BD120,000. Budgeted variable costs are BD64 per unit, while fixed costs total BD 600,000. Actual income was BD 354,000 on actual Sales of 21,000 units at BD104 cach. Actual variable Costs were BD 60 per unit and fixed costs totaled BD 570,000. Prepare a variance analysis report with both flexible budget and sales volume variances. Master Sales Flexible Flexible Particulars Volume Actual Budget Budget Variance Budget Variance Results Units sold 20000 21000 21000 Sales Revenue Variable Costs Contribution Margin Fixed cost Net Income This is an individual activity given to the students to do independently and submit their answer ACTIVITY OUTPUT Answer using A4 or any ruled clean paper. 2. The answers must be written in your own handwriting. Try to answer the question based on critical thinking using the lecture notes and examples provided in the class lectures. Submission deadline before test 2 FACULTY FEEDBACK