Accounting 9706 · AS & A Level · Budgeting and budgetary control

Budgeting and budgetary control — practice question

Consult Source A in the insert.
(a)[3]

Prepare the flexible budget statement for the month of April.

(b(i))[2]

Calculate the following variances: sales price.

(b(ii))[2]

Calculate the following variances: sales volume (as a measure of change in profit).

(b(iii))[2]

Calculate the following variances: fixed overhead expenditure.

(b(iv))[2]

Calculate the following variances: fixed overhead volume.

(c)[7]

Prepare a statement that reconciles the flexible budgeted profit you calculated in (a) with the actual profit. Begin your statement with the flexible budgeted profit.

(d)[7]

Advise the directors which supplier to select. Support your answer with calculations and relevant justification.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI