Question:
A company incurs the following expenses to produce 1,000 units of an article:
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Direct Materials
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30,000
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Direct Labour
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15,000
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Power [20% fixed]
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10,000
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Repairs & Maintenance [15% fixed]
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8,000
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Depreciation (40% variable)
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6,000
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Administrative Expenses [100% fixed]
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12,000
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Prepare a Flexible Budget showing the individual expenses of production levels at 1,500 units and 2,000 units.