Question

100% variable
100%
1
24. The cost of an article at a capacity level of 5,000 units is given in the table below under Column A.
For a variation of 25% in capacity above or below this level, the individual expenses vary, as indicated
in Column B.
B
A
₹
Material
25,000
Labour
15,000
Power
1,250
80%
Repairs and maintenance
2,000
75%
Stores
1,000
100%
Inspection
500
20%
Administrative overhead
5,000
25%
Selling overhead
3,000
50%
Depreciation
10,000
100% fixed
Total
62,750
Cost
per
unit
12:55
You are required to prepare the production cost budget (flexible) at 4,000 units and 6,000 units.
TYY​

Answer 1

Answer:

100%

Inspection

500

20%

Administrative overhead

5,000

25%

Selling overhead

3,000

50%

Depreciation

10,000

100% fixed

Total

62,750

Cost

per

unit

12:55

You are required to prepare the production cost budget (flexible) at 4,000 units and 6,000 units.

TYY

Answer 2

Answer:

total cost for 4000units, rupee 51480 and for 6000 units rupee 74020