Question

M/s. Ekta Ltd. has been functioning at its 60% Capacity Level. Prepare a flexible budget of the Company at 50%, 60% and 70% capacity.
Particulars At 60% Capacity
Rupees
Direct Material Cost 60000
Direct Wages 45000
Direct Expenses 30000
Variable overheads:
Indirect material 6000
Indirect labour 18000
Semi-variable overheads:
Electricity (40% fixed 60% variable) 30000
Repairs (80% fixed 20% variable) 3000
Fixed Overheads:
Depreciation 16500
Insurance 4500
Salaries 15000

Answer 1

Answer:

Fixed Overheads:

Depreciation 16500

Insurance 4500

Salaries 15000