Load-shedding Solutions (Pty) Ltd (LSS) produces one standard type of solar light. LSS's level of activity fluctuates from month to month. The following budget shows expectations of currently attainable activity at 15,000 units per month.

The budgeted costs are based on normal production levels of 15,000 units. The actual production level achieved in the month of August 2023 was 17,000 units, and the actual costs were as follows:

REQUIRED:
Prepare the performance report against the flexible budget for the month of August 2023. Clearly indicate whether the variances are favorable or unfavorable.

When completing the template below, ensure that numbers are written with decimals, for example, R250,000 is written as 250000. Use brackets, for example, (250000), where applicable.

A favorable means that the actual variance costs are lower than the budgeted costs, while an unfavorable variance means that the actual costs are higher than the budgeted costs.

the performavariance nce report against the flexible budget for the month of August 2023, we need to compare the actual costs with the budgeted costs based on the normal production level of 15,000 units.

First, let's calculate the flexible budget costs for the actual production level achieved in August 2023, which was 17,000 units.

we can use the concept of a cost driver. In this case, the cost driver is the number of units produced. The flexible budget costs can be calculated by adjusting the budgeted costs based on the difference in the number of units produced.

Let's calculate the flexible budget costs:

1. Determine the cost per unit: Divide the budgeted costs by the budgeted production level.
2. Multiply the cost per unit by the actual production level to get the flexible budget costs.

Now, let's calculate the variances:

1. Calculate the flexible budget variance by subtracting the flexible budget costs from the actual costs.
2. Calculate the production volume variance by subtracting the flexible budget costs from the budgeted costs based on the normal production level.

For each variance, we need to determine whether it is favorable or unfavorable. A favorable variance means that the actual costs are lower than the budgeted costs, while an unfavorable variance means that the actual costs are higher than the budgeted costs.

Learn more about variance with the given link,

https://brainly.com/question/9304306

#SPJ11