Question

15. Prepare a flexible budget for a production level at 80% and 100%:
Production at 50% capacity, 5000 units
Raw Materials Rs. 80 per unit
Direct Labour Rs. 50 per unit
Variable Expenses Rs. 10 per unit
Factory Over head Rs. 50,000 (50% fixed)
Office Overhead Rs. 60,000 (40% fixed)​

Answer 1

Prepare a flexible budget for a production level at 80% and 100%:

Production at 50% capacity, 5000 units

Raw Materials Rs. 80 per unit

Direct Labour Rs. 50 per unit

Variable Expenses Rs. 10 per unit

Factory Over head Rs. 50,000 (50% fixed)

Office Overhead Rs. 60,000 (40% fixed)