Illustration 1. The expenses for the production of 5,000 units in a factory are given as follows: Per unit ? Materials 50 Labour 20 Variable Overheads 15 Fixed Overheads (7 50,000) Administrative expenses (5% variable) Selling expenses (20%Fixed) Distribution expenses (10% Fixed) Total cost of sales per unit 10 10 {116 You are required to prepare a budget for the production of 7,000 units.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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+ Budgets - Refer...
Illustration 1. The expenses for the production of 5,000 units in a factory are given as follows:
Per unit ?
Materials
50
Labour
20
Variable Overheads
15
Fixed Overheads (7 50,000)
Administrative expenses (5% variable)
Selling expenses (20% Fixed)
Distribution expenses (10% Fixed)
Total cost of sales per unit
10
10
{ 116
You are required to prepare a budget for the production of 7,000 units.
Transcribed Image Text:+ Budgets - Refer... Illustration 1. The expenses for the production of 5,000 units in a factory are given as follows: Per unit ? Materials 50 Labour 20 Variable Overheads 15 Fixed Overheads (7 50,000) Administrative expenses (5% variable) Selling expenses (20% Fixed) Distribution expenses (10% Fixed) Total cost of sales per unit 10 10 { 116 You are required to prepare a budget for the production of 7,000 units.
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