Prepare a flexible budget for the production

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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.

Reference no: EM13516536

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