With the following data for a 60% capacity, prepare a budget for production at 80% and 100% activity. Production at 60% activity 600 units materials Rs. 100 per unit (100% variable) Materials Rs. 40 per unit (100% variable) Labours Rs. 40 per unit (100% variable) Direct Expenses Rs. 10 per unit (Rs. 6 per unit fixed) Factory expenses Rs. 40,000 (40% fixed) Administrative expenses Rs. 30,000 (60% fixed)

With the following data for a 60% capacity, prepare a budget for production at 80% and 100% activity. Production at 60% activity 600 units materials Rs. 100 per unit (100% variable) Materials Rs. 40 per unit (100% variable) Labours Rs. 40 per unit (100% variable) Direct Expenses Rs. 10 per unit (Rs. 6 per unit fixed) Factory expenses Rs. 40,000 (40% fixed) Administrative expenses Rs. 30,000 (60% fixed)

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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The master budget of Knope Inc. shows that the planned activity level for next year is expected to be 25,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor................................................. $720,000 Machine supplies.............................................180,000 Indirect materials.............................................210,000 Depreciation on factory building..................150,000 Total manufacturing overhead.................$1,260,000 A flexible budget for a level of activity of 30,000 machine hours would show total manufacturing overhead costs of Group of answer choices $1,260,000 $1,512,000 $1,362,000 $1,482,000
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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