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.

Recognize the roles and effectiveness of various sales approaches in engaging potential clients.

Grasp the concept and structure of the SPIN (Situation, Problem, Implication, Need-payoff) questioning technique.

Assess the impact of product demonstrations in influencing buyer decisions.

Construct questions effectively to leverage sales opportunities and build customer relationships.

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