The following information are provided to you: The company is running at 100% capacity and produced 20,000 units of output with the following costs…
2024 · Solved Question with Answer
The following information are provided to you:
The company is running at 100% capacity and produced 20,000 units of output with the following costs data:
| Particulars | Amounts (Rs.) |
|---|---|
| Direct material costs | 240,000 |
| Direct labor costs | 160,000 |
| Manufacturing costs (60% fixed cost) | 200,000 |
| Selling expenses ( 60% variable ) | 80,000 |
| Administrative overhead (100 % fixed ) | 60,000 |
Required:
(a) Flexible budget for 80% and 90% output to be attained in the next month.
(b) Profit of product, if profit is 25% on cost.