- The budgeting cost of electricity is Rs.62,500 for 5000 units of production per month and Rs 71,500 for 6,200 units of production per month. If the company manufactures 6,900 units in the month of May 2003, the budgeted amount of electricity for the month is
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71500-62500/6200-500
=9000/1200=7.5
now
when units were 6200 den d amt was 71500
so for 700units more (6900-6200)
we will do 700*7.5=5250
therefore 71500-5250=76750
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