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The expenses for the budgeted production of 5,000 units in a factory are furnished as follows:
Rs. Per Unit
Materials
35.00
Labour
12.50
Variable overheads
10.00
Fixed overheads (Rs. 50,000)
5.00
Variable expenses (direct)
2.50
Selling expenses (10% fixed)
6.50
Distribution expenses (20% fixed)
3.50
Administration expenses (25,000) (fixed for all levels)
Total cost
77.50
Prepare a flexible budget for the production of (a) 3,000 units and (b) 4,000 units.
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