prepare a flexible budget for the production of a 3 000 units and b 4 000 units 622101
The expenses for the budgeted production of 5,000 units in a factory are furnished as follows:
|
Rs. Per Unit |
|
|
Materials |
35.00 |
|
Labour |
12.50 |
|
Variable overheads |
10.00 |
|
Fixed overheads (Rs. 50,000) |
5.00 |
|
Variable expenses (direct) |
2.50 |
|
Selling expenses (10% fixed) |
6.50 |
|
Distribution expenses (20% fixed) |
3.50 |
|
Administration expenses (25,000) (fixed for all levels) |
2.50 |
|
Total cost |
77.50 |
Prepare a flexible budget for the production of (a) 3,000 units and (b) 4,000 units.