00:01
In the given portion we have been given with the flexible budget formula, that is, the cost is equals to 340 ,000 plus 9x, where this x represent the number of units produced.
00:23
Now, the texas produced total 20 ,000 units at a cost of 490 ,000 pieces.
00:31
Therefore, for 20 ,000 units, the actual cost amounts to 490 ,000 pieces.
00:52
Now, what we need to do, we need to find out the budgeted cost for this 20 ,000 units in order to find out the variance.
01:00
So, the budgeted cost for 20 ,000 units using the cost formula is going to be, the cost formula is of 340 ,000 plus 9 times the unit produced.
01:30
So unit produced is 20 ,000.
01:32
So we will put this value here.
01:34
So this is going to get us 340 ,000 plus 180 ,000.
01:43
So this is going to get us total budgeted cost of 520 ,000 pesos...