The expenses budgeted for production of 10,000 units in a factory are furnished below:OMR. per unit70MaterialLabor25Variable overheads20Fixed overheads (OMR. 1,00,000)Variable expenses (direct)10Selling expenses (10% fixed)13Distribution expenses (20% fixed7Administration expenses (OMR. 50(000)5Total 155Prepare a budget for the production of (a) 8,000 units, and (b) 6,000 units.Assume that administration expenses are rigid for all levels of production.

Governments, organizations, and people all use budgets to estimate revenue and expenses for a…

The expenses budgeted for production of 10,000 units in a factory are furnished bel OMR. per Material 70 Labor 25 Variable overheads 20 Fixed overheads (OMR. 1,00,000) Variable expenses (direct) Selling expenses (10% fixed) Distribution expenses (20% fixed Administration expenses (OMR. 50(000) 10 13 7 5 Total 155 Prepare a budget for the production of (a) 8,000 units, and (b) 6,000 units. that adminictration rigid fer all lovels of produuction

The expenses budgeted for production of 10,000 units in a factory are furnished bel OMR. per Material 70 Labor 25 Variable overheads 20 Fixed overheads (OMR. 1,00,000) Variable expenses (direct) Selling expenses (10% fixed) Distribution expenses (20% fixed Administration expenses (OMR. 50(000) 10 13 7 5 Total 155 Prepare a budget for the production of (a) 8,000 units, and (b) 6,000 units. that adminictration rigid fer all lovels of produuction

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Q1. Prepare a Flexible budget for overheads on the basis of the following data. Ascertain the overhead rates at 70% and 80% capacity. Variable Overheads (60% capacity) Indirect Material = Rs. 6,000 Labour Rs. 18,000 Semi-variable overheads: Electricity (40% fixed) = Rs. 40,000 Repairs (80% fixed) = Rs. 2,400 Fixed Overheads: Depreciation Rs. 16,500 = Insurance = Rs. 4,500 Salaries= Rs. 20,000 Estimated Labour Hours 15,000 hrs = E
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