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)
|
2.50
|
|
Total cost
|
77.50
|
Prepare a flexible budget for the production of (a) 3,000 units and (b) 4,000 units.