Question

he expenses budgeted for production of 10000 units in a factory are furnished below: Rs. Per unit Material 70 Labor 25 Variable Overheads 20 Fixed Overheads (Rs100000) 10 Variable expenses (Direct) 5 Selling expenses (10% fixed) 13 Distribution expenses (20% fixed) 7 Administration expenses (Rs 50,000) 5 Total 155 Prepare a budget for the production of : (i) 8000 units (ii) 6000 units Assume that the administration expenses are rigid for all levels of production

Answer 1

Explanation:

Answer:

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.

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