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    Preparing An Activity Flexible Budget

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    Julma Jaiiy
    The document outlines an activity-based flexible budget for a manufacturing company. It includes flexible budgets for maintenance, machining, setups, and purchasing based on the key drivers of machine hours, number of setups, and purchase orders. The total flexible budget is calculated for a scenario with 60,000 machine hours, 50 setups, and 12,000 purchase orders as well as an alternative scenario with 90,000 machine hours, 70 setups, and 18,000 purchase orders.

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    Preparing An Activity Flexible Budget

    Uploaded by

    Julma Jaiiy
    21 views3 pages
    The document outlines an activity-based flexible budget for a manufacturing company. It includes flexible budgets for maintenance, machining, setups, and purchasing based on the key drivers of machine hours, number of setups, and purchase orders. The total flexible budget is calculated for a scenario with 60,000 machine hours, 50 setups, and 12,000 purchase orders as well as an alternative scenario with 90,000 machine hours, 70 setups, and 18,000 purchase orders.

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    The document outlines an activity-based flexible budget for a manufacturing company. It includes flexible budgets for maintenance, machining, setups, and purchasing based on the key drivers of machine hours, number of setups, and purchase orders. The total flexible budget is calculated for a scenario with 60,000 machine hours, 50 setups, and 12,000 purchase orders as well as an alternative scenario with 90,000 machine hours, 70 setups, and 18,000 purchase orders.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    21 views3 pages

    Preparing An Activity Flexible Budget

    Uploaded by

    Julma Jaiiy
    The document outlines an activity-based flexible budget for a manufacturing company. It includes flexible budgets for maintenance, machining, setups, and purchasing based on the key drivers of machine hours, number of setups, and purchase orders. The total flexible budget is calculated for a scenario with 60,000 machine hours, 50 setups, and 12,000 purchase orders as well as an alternative scenario with 90,000 machine hours, 70 setups, and 18,000 purchase orders.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Preparing an Activity Flexible Budget

    40,000 units
    Driver : Machine Hours
    Fixed Variable 60,000
    Maintenance 50,000 1.8 158,000
    Machining 25,000 3 205,000
    Subtotal 75,000 4.8 363,000

    Driver : Number of Setups


    Fixed Variable 50
    Setups _ 2,100 105,000
    Subtotal _ 2,100 105,000

    Driver : Number of Purchase Orders


    Fixed Variable 12,000
    Purchasing 75,000 7 159,000
    Subtotal 75,000 7 159,000

    TOTAL 627,000

    Maintenance :

    at 60,000 machine hours


    50,000 + ( 1.80 x 60,000 ) = 158,000

    at 90,000 machine hours


    50,000 + ( 1.80 x 90,000) = 212,000

    Machining :

    at 60,000 machine hours


    25,000 + ( 3.00 x 60000 ) = 205,000

    at 90,000 machine hours


    25,000 + ( 3.00 x 90,000 ) = 295,000

    Setting up

    at 50 setups
    2,100 x 50 = 105,000

    at 70 setups
    2,100 x 70 = 147,000

    Purchasing :

    at 12,000 purchase orders


    75,000 + ( 7.00 x 12,000 ) = 159,000

    at 18,000 purchase orders


    75,000 + ( 7.00 x 18,000 ) = 201,000
    60,000 units

    90,000
    212,000
    295,000
    507,000

    70
    147,000
    147,000

    18,000
    201,000
    201,000

    855,000

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