Prepare a budget that will be useful for management control

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Problem - The budgeted and actual results of Crown Oil Co, a downstream oil and gas company in Midtown, for September 20X0 were as follows. The company uses a marginal costing system. There were no opening or closing stocks.

 

Fixed budget

Actual

Sales and production

1000 Million Litres

700 Million Litres

 

AED' million

AED' million

AED' million

AED' million

Sales

 

30,000

 

21,200

Cost of sales

 

 

 

 

Manpower

9,000

 

9,200

 

Catalyst

2,000

 

1,900

 

Power and fuel

2,000

 

1,500

 

G&A

1,000

 

1,200

 

Repairs and maintenance

3,000

 

2,400

 

Feedstock

12,000

 

9,200

 

Profit/(loss)

 

1,000

 

(4,200)

Required - Prepare a budget that will be useful for management control purposes.

Reference no: EM132833335

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