Reference no: EM132583069
The Expenses for the budget production of 10,000 units in a factory are furnished below:
Material- Rs 70/unit
Labour - Rs 25/unit
Variable overheads -Rs 20 /unit
Fixed Overheads ( Rs 1,00,000) -Rs 10/unit
Variable Expenses(Direct)-Rs 5/unit
Selling expenses ( 10% Fixed) -Rs 13/unit
Distribution expenses (20 % Fixed)-Rs 7/unit
Administration Expenses (Rs 50,000)-Rs 5/unit
Total cost
per unit ( to make ,to sell )- Rs 155/unit
Question 1: Prepare budget for production of 8000 units and 6,000 units ( indicate cost per unit at both the levels) Assume that administration expenses are fixed for all the levels of production