For the production of 10,000 units the following are the
budgeting expenses:
Per Unit
Rs.
Direct materials 60
Direct labour 30
Variable overhead 25
Fixed overhead (Rs.1,50,000) 15
Selling expenses (10% fixed) 15
Variable expenses (direct) 5
Administrative expenses (Rs.50,000 fixed) 5
Distribution expenses (20% fixed) 5
Total cost of sales per unit 160
Prepare the flexible budget for the production of 6,000 ,
7,000 ,and 8,000 units of production
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