Flexible Budget (Practical Problems): Exercise 2: A department of AXY Company attains sales of OMR. 6,00,000 at 80% of its normal capacity. Its expenses are given below: Office salaries General expenses Depreciation Rent and rates Selling Costs: Salaries Travelling expenses Sales office General expenses Distribution Costs: Wages Rent OMR 90,000 2% of sales 7,500 8,750 8% of sales 2% of sales 1% of sales 1% of sales 15,000 1% of sales 4% of sales Other expenses Draw up Flexible Administration, Selling and Distribution Costs Budget, operating at 90 per cent, 100 per cent and 110 per cent of normal capacity.

Flexible Budget (Practical Problems): Exercise 2: A department of AXY Company attains sales of OMR. 6,00,000 at 80% of its normal capacity. Its expenses are given below: Office salaries General expenses Depreciation Rent and rates Selling Costs: Salaries Travelling expenses Sales office General expenses Distribution Costs: Wages Rent OMR 90,000 2% of sales 7,500 8,750 8% of sales 2% of sales 1% of sales 1% of sales 15,000 1% of sales 4% of sales Other expenses Draw up Flexible Administration, Selling and Distribution Costs Budget, operating at 90 per cent, 100 per cent and 110 per cent of normal capacity.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Current Attempt in Progress Sandhill's, Inc. has provided you with the following financial information: Budgeted Actual Sales Quantity 8,100 8,300 Sales price per unit $6.50 $6.25 Variable product cost per unit 2.50 2.75 Selling expense (fixed) 5,100 8,100 Administrative expense (fixed) 17,100 16,100 Income tax expense 3,900 4,100 Prepare a flexible budget. SANDHILL'S, INC. Flexible Budget Sales Revenue