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Question - Exotica Ltd produces 10,000 masks every month. The company's expenses to 1 unitof the product are listed below:
Particulars Rs.
Direct Material 7
Direct Labour 5
Other Variable Expenses 4.5
Administrative Overheads 6 (40% VARIABLE)
Selling Overheads 3 (75% VARIABLE)
Production Overheads 4 (20% VARIABLE)
Purchase of Equipment 30000
Selling Price Rs.120
Required - Prepare budget for 70%, 80% and 100% utilization of the capacity if details listed above is for 100% capacity utilization?
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For fixed manufacturing costs, the difference between the master budget and the flexible budget is equal to zero.
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