Prepare a flexible budget for overheads on the basis of the following data and ascertain overhead rates at 50%, 60% and 70% capacity Variable overheads: Indirect material Indirect labour Semi-variable overheads: Electricity (40 % fixed 60% variable) Repairs (80% fixed 20% variable) Fixed overheads: Depreciation Insurance Salaries Total overheads Estimated direct labour hours At 60% capacity Rs 6,000 18,000 30,000 3,000 16,500 4,500 15,000 93,000 1,86,000

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Prepare a flexible budget for overheads on the basis of the following data and ascertain overhead rates at 50%, 60% and 70%
capacity
Variable overheads:
Indirect material
Indirect labour
Semi variable overheads:
Electricity (40 % fixed 60% variable)
Repairs (80% fixed 20% variable)
Fixed overheads:
Depreciation
Insurance
Salaries
Total overheads
Estimated direct labour hours
At 60% capacity
Rs
6,000
18,000
30,000
3,000
16,500
4,500
15,000
93,000
1,86,000
Transcribed Image Text:Prepare a flexible budget for overheads on the basis of the following data and ascertain overhead rates at 50%, 60% and 70% capacity Variable overheads: Indirect material Indirect labour Semi variable overheads: Electricity (40 % fixed 60% variable) Repairs (80% fixed 20% variable) Fixed overheads: Depreciation Insurance Salaries Total overheads Estimated direct labour hours At 60% capacity Rs 6,000 18,000 30,000 3,000 16,500 4,500 15,000 93,000 1,86,000
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