The budgeted and actual results of Crunch Co for September were as follows. The company uses a marginal costing system. There were no opening or closing stocks.
|
Sales and production
|
|
Fixed budget
1,000 units
|
|
Actual
700 units
|
|
|
$
|
$
|
$
|
$
|
|
Sales
|
|
20,000
|
|
14,200
|
|
Variable cost of sales
|
|
|
|
|
|
Direct materials
|
8,000
|
|
5,200
|
|
|
Direct labour
|
4,000
|
|
3,100
|
|
|
Variable overhead
|
2,000
|
|
1,500
|
|
|
|
|
14,000
|
|
9,800
|
|
Contribution
|
|
6,000
|
|
4,400
|
|
Fixed costs
|
|
5,000
|
|
5,400
|
|
Profit/(loss)
|
|
1,000
|
|
(1,000)
|
|
Required
|
|
|
|
|
Prepare a budget that will be useful for management control purposes.