Timothy, SA APrepare an Overhead Budget for the Expected Activity Level for Company

question 38

Essay

Timothy, SA., uses a flexible budget for overhead costs. The company expects to produce 40,000 units of the product it manufactures. Each unit requires 0.40 direct labour hours. The cost formulas for each of the four overhead items (where X is measured in direct labour hours) is as follows: $\begin{array}{lc}&\text { Cost Formula }\\\text { Power } & 0.40 \mathrm{X} \\\text { Maintenance } & £ 15,000+0.60 \mathrm{X} \\\text { Indirect labour } & £ 18,000+2.50 \mathrm{X} \\\text { Rent } & £ 20,000\end{array}$
a.Prepare an overhead budget for the expected activity level for the coming year.
b.Prepare an overhead budget that reflects production that is 25 per cent lower than expected.

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Definitions:

Gendered Division of Labor

The allocation of different tasks, jobs, or responsibilities to individuals based on their gender, leading to inequalities in the workplace and other spheres of life.

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Intersectionality

A framework for understanding how various forms of social stratification, such as race, gender, and class, intersect and impact individuals and groups.

Gender Inequality

The disparity in status, power, and opportunity between individuals based on their gender, manifesting in various areas of social, economic, and political life.