The manager of a business has budgeted to produce 600,000 units of output in 2017. The standard quantities for this budgeted output level are as follows:
| Materials (metal) Don't use plagiarized sources. Get Your Custom Essay on the manager of a business has budgeted to produce 600 000 units of output in 2017 th 611300 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page | 450,000 m2 |
| Materials (fabric) | 200,000 m2 |
| Labour | 50,000 hours |
If actual output fell short of budgeted levels and was 40 per cent less than expected, at 360,000 units of output, we should ‘flex’ these standard quantities to match the actual output level. This will mean reducing the standard quantities by 40 per cent, which gives us the following:
| Materials (metal) | 270,000 m2 |
| Materials (fabric) | 120,000 m2 |
| Labour | 30,000 hours |
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