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

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 16E: Determining Budgeted Overhead The overhead application rate for a company is 10 per unit, made up of...
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The expenses budgeted for production of 10,000 units in a factory are furnished below:
OMR. per unit
70
Material
Labor
25
Variable overheads
20
Fixed overheads (OMR. 1,00,000)
Variable expenses (direct)
10
Selling expenses (10% fixed)
13
Distribution expenses (20% fixed
7
Administration expenses (OMR. 50(000)
5
Total 155
Prepare 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.
Transcribed Image Text:The expenses budgeted for production of 10,000 units in a factory are furnished below: OMR. per unit 70 Material Labor 25 Variable overheads 20 Fixed overheads (OMR. 1,00,000) Variable expenses (direct) 10 Selling expenses (10% fixed) 13 Distribution expenses (20% fixed 7 Administration expenses (OMR. 50(000) 5 Total 155 Prepare 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.
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