Calculation flexible budget overhead problema
Answers
Answered by
1
Problems on Flexible Budgeting and Overhead Variances
P 1. A company produces 10,000 units at 100% capacity, and the costs at this level are as follows:
Fixed costs Rs. 10000
Variable costs Rs. 3 per unit
Semi-variable costs Rs. 4 per unit (40% variable)
Required: Flexible budget for budgeted level of activity of 80%, 90% and 100%.
P 2. The expenses budgeted for production of 10,000 units in a factory is furnished below:
Particulars
Per unit Rs.
Material
Labour
Variable overhead
Fixed overheads (Rs. 100,000)
Variable expenses (direct)
Selling expenses (10% fixed)
Distribution expenses (20% fixed)
Administration expenses (Rs. 50,000)
70
25
20
10
5
13
7
5
Total cost of sale per unit
155
Required: A budget for production of 6,000 units and 8,000 units of showing total cost, Assume that administration expenses are rigid for all levels of production.
P 3. A company has installed a machine with a capacity of producing 120,000 units of output annually. To provide reasonability in planning and controlling process it has defined its annual normal capacity as 100,000 units. The company's cost structures at two different levels of output are given below:
Volume of output
50,000 units
100,000 units
Total cost
Rs. 500,000
Rs. 800,000
Required:
(a) Flexible budgeting data by segregating cost
(b) Budget for the production volume of 70,000 units and 110,000 units. (TU 2052)
P 4. The budgets for manufacturing overhead of a concern for two levels of activity were as follows:
Particulars
Capacity Level
5,400 units (60%)
6,300 units(70%)
Direct material
Direct wages
Production overhead
Administration overhead
Selling and distribution overhead
Rs.37,800
16,200
37,600
31,500
42,300
Rs. 44100
18,900
41,200
31,500
44,100
Total cost
165,400
179,800
Profit is 20% of selling price.
Required: A budget based on a level of activity of 50% which should show clearly the contribution which could be expected.
P 1. A company produces 10,000 units at 100% capacity, and the costs at this level are as follows:
Fixed costs Rs. 10000
Variable costs Rs. 3 per unit
Semi-variable costs Rs. 4 per unit (40% variable)
Required: Flexible budget for budgeted level of activity of 80%, 90% and 100%.
P 2. The expenses budgeted for production of 10,000 units in a factory is furnished below:
Particulars
Per unit Rs.
Material
Labour
Variable overhead
Fixed overheads (Rs. 100,000)
Variable expenses (direct)
Selling expenses (10% fixed)
Distribution expenses (20% fixed)
Administration expenses (Rs. 50,000)
70
25
20
10
5
13
7
5
Total cost of sale per unit
155
Required: A budget for production of 6,000 units and 8,000 units of showing total cost, Assume that administration expenses are rigid for all levels of production.
P 3. A company has installed a machine with a capacity of producing 120,000 units of output annually. To provide reasonability in planning and controlling process it has defined its annual normal capacity as 100,000 units. The company's cost structures at two different levels of output are given below:
Volume of output
50,000 units
100,000 units
Total cost
Rs. 500,000
Rs. 800,000
Required:
(a) Flexible budgeting data by segregating cost
(b) Budget for the production volume of 70,000 units and 110,000 units. (TU 2052)
P 4. The budgets for manufacturing overhead of a concern for two levels of activity were as follows:
Particulars
Capacity Level
5,400 units (60%)
6,300 units(70%)
Direct material
Direct wages
Production overhead
Administration overhead
Selling and distribution overhead
Rs.37,800
16,200
37,600
31,500
42,300
Rs. 44100
18,900
41,200
31,500
44,100
Total cost
165,400
179,800
Profit is 20% of selling price.
Required: A budget based on a level of activity of 50% which should show clearly the contribution which could be expected.
Similar questions