The expenses budgeted for production of 1,000 units in a factory are furnished below: Particulars Per Unit OMR. Material Cost 700 Labour Cost 250 Variable overheads 200 Selling expenses (20% fixed) 130 Administrative expenses (OMR. 200,000) 200 Total Cost 1,480 Prepare a budget for production of 800 units assuming administrative expenses are rigid for all level of production. a. OMR 1,239,300 b. OMR 1,229,200 c. OMR 1,350,000 d. OMR 1,250,000
The expenses budgeted for production of 1,000 units in a factory are furnished below: Particulars Per Unit OMR. Material Cost 700 Labour Cost 250 Variable overheads 200 Selling expenses (20% fixed) 130 Administrative expenses (OMR. 200,000) 200 Total Cost 1,480 Prepare a budget for production of 800 units assuming administrative expenses are rigid for all level of production. a. OMR 1,239,300 b. OMR 1,229,200 c. OMR 1,350,000 d. OMR 1,250,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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16
The expenses budgeted for production of 1,000 units in a factory are furnished below:
Particulars Per Unit OMR.
Material Cost 700
Labour Cost 250
Variable overheads 200
Selling expenses (20% fixed) 130
Administrative expenses (OMR. 200,000) 200
Total Cost 1,480
Prepare a budget for production of 800 units assuming administrative expenses are rigid for all level of production.
a.
OMR 1,239,300
b.
OMR 1,229,200
c.
OMR 1,350,000
d.
OMR 1,250,000
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