Chimco is a limited company operating in the Hat making industry in East England. Below is a cost breakdown of their activities for the year 2020. Their business has been severely impacted by the covid -19 lockdown as they people were Week 8 Seminar QuestionChimco is a limited company operating in the Hat making industry in East England. Below is acost breakdown of their activities for the year 2020. Their business has been severely impactedby the Covid-19 lockdowns as they people were confined to their houses due to Governmentregulations.ItemsCost perActual (£)unitUnits100,000Selling price3530Revenue3,000,000Variable costs:Materials3.50380,000Labour540,000Overhead2.50250,000Contribution241,830,000Fixed overheads:Warehouse rental350,000200,000Insurance150,000150,000Fulltime supervisor60,00045,000salaryProfit1,435,000(i) Prepare the monthly control report showing original budget, flexed budget, and variances.(ii) Using your control report prepared in (i) above, prepare a report on Chimco's performanceduring the year 2020.(iii) Provide recommendations to Chimco's CEO on areas of improvement.

A budget refers to a predetermined plan which is quantifiable and estimates the revenues and…

Answered: Week 8 Seminar Question Chimco is a…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.6.3P

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