produces two products, A and Z. In the year ending 30 April 2020, it produced 6,000 A and 12,500 Z and incurred costs of $1,850,000 The costs incurred are such that 30% are variable. 60% of these variable costs vary with the number of Z produced, with the remainder varying with the output of A. The budget for the three months to 31 October 2020 is being prepared using an incremental approach based on the following: • All costs will be 6% higher than the average paid in the year ended 30 April 2020. • Efficiency levels will be unchanged. • Expected output: A 1,350 units 6,890 units Instructions: What is the budgeted cost for the output of A (to the nearest $100) for the 3 months ending 31 October 2020?

produces two products, A and Z. In the year ending 30 April 2020, it produced 6,000 A and 12,500 Z and incurred costs of $1,850,000 The costs incurred are such that 30% are variable. 60% of these variable costs vary with the number of Z produced, with the remainder varying with the output of A. The budget for the three months to 31 October 2020 is being prepared using an incremental approach based on the following: • All costs will be 6% higher than the average paid in the year ended 30 April 2020. • Efficiency levels will be unchanged. • Expected output: A 1,350 units 6,890 units Instructions: What is the budgeted cost for the output of A (to the nearest $100) for the 3 months ending 31 October 2020?

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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