what are the flexible budget formula, Cost Accounting

Assignment Help:

Question:

Timothy Ltd uses a flexible budget for overhead costs. The company expects to produce 40,000 units of the product it manufactures. Each unit requires 0.40 direct labour hours. The cost formulas for each of the four overhead items (where X is measured in direct labour hours) are as follows:

Cost item:

Cost formula

Power

0.40X

Maintenance

$15,000 + 0.60X

Indirect labour

$18,000 + 2.50X

Rent

$20,000

(A) What are the flexible budget formulae for Willoughby Ltd?

(B) Prepare an overheads budget for the expected activity level for the coming year. Show each expense item separately with subtotals for variable and fixed overhead.

(C) Prepare an overheads budget that reflects production that is 25% lower than expected.

(D) In what way are flexible budgets different from static budgets? Why are flexible budgets better than static budgets for assessing performance?

 


Related Discussions:- what are the flexible budget formula

ECONOMICS, #ques Case Study Electron Control, Inc., sells volt...

#ques Case Study Electron Control, Inc., sells voltage regulators to other manufacturers, who then customize and distribute the products to quality assurance labs for

Goods and services tax, William Potter is a plumber currently operating as ...

William Potter is a plumber currently operating as a Sole Trader in Levin. William has approached you, a tax accountant, for your advice on certain tax matters. William's brothe

Methods required to allocate joint costs, Methods Required To Allocate Join...

Methods Required To Allocate Joint Costs 1) Physical/Unit Measure 2) Constant gross margin rate 3) Net realizable value.

Calculate the price of regular bonds, XYZ Inc. plans to raise $5,000,000 ex...

XYZ Inc. plans to raise $5,000,000 external financing through issuing bonds, and is considering two options: regular bonds and zero couple bonds.  The regular bonds will have coupo

Determine marginal and average cost curves take a u shape, 1) A) In a compe...

1) A) In a competitive market place (pure competition) is it possible to continually sell your product at a price above the average cost of production?  Why or why not? B) Why d

Income received in advance, This is the income received but not earned thro...

This is the income received but not earned throughout the accounting period. Conversely, this is the income for those services are to be rendered in future. Such income is deducted

debt service fund and special revenue fund, For your assignment, discuss w...

For your assignment, discuss when the government and nonprofit organizations would use each of the following funds: Capital projects fund Debt service fund Special r

Commodities to stock, Commodities to Stock Employ Material Req...

Commodities to Stock Employ Material Requirement Planning From the Master Production Schedule the manager has determined such the products to be produced. A

Chapter 4 Fundamentals of Cost Analysis for Decision Making, 31. Special Or...

31. Special Orders Maria’s Food Service provides meals that nonprofi t organizations distribute to handicapped and elderly people. Here is her forecasted income statement for April

What is wage rate, The employees at Warren Manufacturing Company are unioni...

The employees at Warren Manufacturing Company are unionized. As minimum requirements, the union members insist on keeping a work force of at least 300 workers, and accepting an hou

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd