3.2. Zara fashion is currently operating at 100%. The data provided in the table below is before the pandemic hit the entire economy. Looking at the current economic climate company’s directors are...

3.2. Zara fashion is currently operating at 100%. The data provided in the table below is before the pandemic hit the entire economy. Looking at the current economic climate company’s directors are concerned that they can’t achieve the target. As a result they want a flexible budget for different levels of activity. The costs below show the company’s operating costs at 100% activity. £ Rent 200,000 Rates 40,000 Direct material 800,000 Direct labour 600,000 Electricity 120,000 Insurance cost 20,000 Indirect labour 30,000

Prepare a flexible budget at the following activity levels: 60, 80,100 and 110%