You have been provided with the budgeted and actual information of XYZ Ltd as shown below;
Budgeted information for May 2020
Production in units
25,000
Direct material (250,000 kgs)
Tshs 362,500
Direct labour (87,500 hours) Tshs 1,089,375
Variable production overheads
Tshs 271,250
Actual results achieved for May 2020
Production in units
Direct material (263,250 kgs)
Direct labour 197,200 hours)
Variable production overheads
27,000
Tshs 394,875
Tshs 1,190,700
Tshs 306,180
Notes:
1. Actual fixed productions overheads for May 2020 amounted to Tshs
172,400
2. Budgeted fixed production overheads was Tshs 175,000 per month
3. Variable production overheads were applied to products based on
budgeted labour hours
Required:
a) Prepare a cost statement showing the original budget, flexed budget and
actual results.
(9 marks)
b) Briefly explain behaviour issues that may arise as part of the annual
budgeting process
(6 mark

San ruiz interiors provides design services to residential and commercial clients. the residential services produce a contribution margin of $450,000 and have traceable fixed operating costs of $480,000. management is studying whether to drop the residential operation. if closed, the fixed operating costs will fall by $370,000 and san ruiz’ income will

Transactions on april 1 of the current year, andrea byrd established a business to manage rental property. she completed the following transactions during april: opened a business bank account with a deposit of $45,000 from personal funds. purchased office supplies on account, $2,000. received cash from fees earned for managing rental property, $8,500. paid rent on office and equipment for the month, $5,000. paid creditors on account, $1,375. billed customers for fees earned for managing rental property, $11,250. paid automobile expenses for month, $840, and miscellaneous expenses, $900. paid office salaries, $3,600. determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,450. withdrew cash for personal use, $2,000. required: 1. indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300)

Suppose life expectancy in years (l) is a function of two inputs, health expenditures (h) and nutrition expenditures (n) in hundreds of dollars per year. the production function is upper l equals ch superscript 0.40 baseline upper n superscript 0.60l=ch0.40n0.60. beginning with c = 1, a health input of $400400 per year (hequals=44) and a nutrition input of $400400 per year (nequals=44), show that the marginal product of health expenditures and the marginal product of nutrition expenditures are both decreasing. the marginal product of health expenditures when h goes from 44 to 55 is nothing, and the marginal product of health when h goes from 66 to 77 is nothing. (round your answers to three decimal places.)