Assignment
a. Explain your understanding of activity flexible budgeting in terms of the relationship between changes in activity costs and changes in activity drivers.
b. Discuss how activity flexible budgeting helps managers plan and monitor activity improvements.
c. Below is the information on four overhead activities for AlKauthar Ltd.:
Fixed Cost
Variable Rate
Machine hours
Machine hours
Setting up
Purchase orders
i. Prepare an activity-based flexible budget for the following production levels:
32,000 units
64,000 units
Machine hours
Setups
Purchase orders
ii.As an accountant, how would you utilize the above information in meeting your responsibility for budgeting and controlling costs?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.