Particular

Materials
Labour
Variable Overheads
Fixed Overheads (Total RS. 50,000)
Administrative Overheads (10% Variable)
Selling Expenses (25% Fixed)
Distribution Expenses (20% Fixed)
Total

Per Unit (Rs)

50
30
20
10
10
8
5
133

X Ltd.
Flexible Budget
Unit Sold
Items of cost
Material
Labour
Variable
overheads
Fixed OHS
Administration
Overheads:
1) Variable
Rs. 1Per Unit
2) Fixed
Selling
Overheads :
1) Variable
@ Rs6 Per Unit
upto 70% &
@Rs. 6.60 Per
Unit at 80%
2)Fixed
Distribution
Expenses
1) Variable
@Rs.4 Per Unit
2)Fixed
Total

50%
5,000
Rs.
2,5,000
1,50,000
1,00,000

60%
6,000
Rs.
3,00,000
1,80,000
1,20,000

Activity Levels
70%
7,000
Rs.
3,50,000
2,10,000
1,40,000

80%
8,000
Rs.
3,80,000
2,40,000
1,60,000

50,000

50,000

50,000

50,000

5,000
45,000

6,000
45,000

7,000
45,000

8,000
45,000

30,000

36,000

42,000

52,800

10,000

10,000

10,000

10,000

20,000
5,000
6,65,000

24,000
5,000
7,76,000

28,000
5,000
8,87,000

32,000
5,000
9,82,800

Particulars
Direct Material
Direct Labour
Factory Overhead
Administrative Overhead

Production in Units
S. Price Per Unit
(A) Total Sales
(B) Cost
Direct Mat.
Direct Labour
Factory Overheads
a) Fixed
b) Variable @Rs. 18 Per
unit
Administration
Overheads
a) Fixed
b) Variable @ Rs. 10
unit
Total Cost
Profit

Per Unit (Rs.)

100
30
30 (40% fixed)
20 (50% fixed)
50%
1,000
Rs.
200
2,00,000

60%
1,200
Rs.
196
2,35,200

80%
1,600
Rs.
190
3,04,000

1,00,000
30,000

1,22,400
36,000

1,68,000
48,000

12,000
18,000

12,000
21,600

12,000
28,800

10,000
10,000

10,000
12,000

10,000
16,000

1,80,000
20,000

2,14,000
21,200

2,82,800
21,200

Items of Cost
Direct Materials
Direct Labour
Variable
Expenses(Direct)
Variable
Overheads
Selling Expenses
(Variable)
(90% of Rs. 15)
Distribution
Expenses
(Variables 80% of
Rs.5)
Marginal Cost
Fixed Production
Overheads
Administration
Exps.
Selling Expenses
Fixed
(10% of Rs. 15
10000 units)
Distribution Exps.
Fixed (20% of Rs.
5 10,000)

Output 6000 Units

Cost per Total cost
unit Rs.
Rs.
60.00
3,60,000
30.00
1,80,000

Output 7000
Cost per
unit Rs.
60.00
30.00

Units
Total cost
Rs.
4,20,000
2,10,000

Output 8000 Units

Cost per
Total
unit Rs.
Cost Rs.
60.00
4,20,000
30.00
2,40,000

5.00

30,000

5.00

35,000

5.00

40,000

25.00

1,50,000

25.00

1,75,000

25.00

2,40,000

13.50

81,00

13.50

94,500

13.50

1,08,000

4.00

24,000

4.00

28,000

4.00

32,000

137.50

8,25,000

137.50

9,62,500

137.50

11,00,00
0

25.00

1,50,000

21.43

1,50,000

18.75

1,50,000

8.33

50,000

7.14

50,000

6.25

50,000

25.00

15,000

2.14

15,000

1.88

15,000

1.67

10,000

1.43

10,000

1.25

10,000

175.00

10,50,000

169.64

11,87,500

165.63

13,25,00

Particulars
Fixed Expenses
Management Salaries
Rent and Taxes
Depreciation of Machinery
Sundry office costs

Rs.
42,000
28,000
35,000
44,000
1,49,500
Rs.

Semi-variable expenses at 50% capacity

Plant Maintenance
Indirect Labour49,500
Salesmens Salaries
Sundry Expenses
Variable Expenses at 50% capacity
Materials
Labour
Salesmens Commission

12,500
49,500
14,500
13,000
89,500
1,20,000
1,28,000
19,000
2,67,000

Particulars
Sales
1) Fixed Expenses :
Management Salaries
Rent and Taxes
Depreciation of machinery
Sundry Office Costs
Total
2) Semi-variable Expenses
Plant Maintenance
Indirect Labour
Salesmens Salaries
Sundry Expenses
Total
3) Variable Expenses :
Materials
Labour
Salesmens Salaries
Total
Total cost (Total of 1,2&3)
Profit / Loss

50%
4,25,000

Capacity Levels
60%
80%
5,10,000
6,80,000

100%
8,50,000

42,000
28,000
35,000
44,500
1,49,500

42,000
28,000
35,000
44,500
1,49,500

42,000
28,000
35,000
44,500
1,49,500

42,000
28,000
35,000
44,500
1,49,500

12,500
49,500
14,500
13,000
89,500

12,500
49,500
14,500
13,000
89,500

13,750
54,450
15,950
14,300
98,450

14,375
56,925
16,675
14,950
1,02,925

1,20,000
1,28,000
19,000
2,67,000
5,06,000
-81,000

1,44,000
1,53,600
22,800
3,20,400
5,59,400
-49,400

1,92,000
2,04,800
30,400
4,27,200
6,75,150
4,850

2,40,000
2,56,000
38,000
5,34,000
7,86,425
63,575

Particular
Materials
Labour
Variable Overheads
Fixed Overheads (Total RS. 1,00,000)
Variable Expenses (Direct)
Selling Expenses (10% Fixed)
Distribution Expenses (20% Fixed)
Administrative Expenses (fixed) (Rs. 50,000)
Total cost per unit (to make and sell)

Per Unit (Rs)

70
25
20
10
05
13
07
05
155

Particulars

10,000 Units Rs.

8000 Units Rs.

6000 Units Rs.

Materials
Labour
Direct Expenses
1) Prime Cost
Fixed Overhead
Variable Overhead
2) Works Overhead
3) Administrative Overhead
Cost of Production
(1,2,&3)
Selling and Distribution on Cost
Selling Expenses :
Fixed
Variable
Distribution Expenses :
Fixed
Variable
Total cost
Cost Per Unit

7,00,000

5,60,000

4,20,000

Particular
Materials
Labour
Variable Overheads
Fixed Overheads (Total Rs. 50,000)
Administrative Expenses (fixed) (5% Variable)
Selling Expenses (20% Fixed)
Distribution Expenses (10% Fixed)
Total cost per unit (to make and sell)

Particulars

Materials
Labour
Variable Overhead
Fixed Overhead
Administrative Overhead (exp.) (5%
Variable)
Selling Expenses (20% fixed)
Distribution Expenses
Total

50% capacity
5,000 Units
Per unit
Amt.
Rs.
Rs.
50
20
15
10
10
6
5
116

Per Unit (Rs)

50
20
15
10
10
06
05
116
70% capacity
7,000
Per unit
Amt.
Rs.
Rs.

90% capacity
9,000 Units
Per unit
Amt.
Rs.
Rs.

Level of Activity
Items
Sales
Administrative
costs :
Office Salaries
General Expenses
Depreciation
Rates and taxes
Total administrative
costs
Selling costs :
Travelling expenses
Sales office
expenses
General expenses
Total selling costs
Distribution cost :
Wages
Rent
Other expenses
Total distribution
costs
Total admn., selling
and
Dist. Cost

Basis

Fixed
2% of sales
Fixed
Fixed

8% of sales
2% of sales
1% of sales
1% of sales
Fixed
1% of sales
4% of sales

80% (Rs.)

90% (Rs.)

100% (Rs.)

110% (Rs.)

Capacity
Particulars
Materials
Labour
Variable Overhead :
Factory
Administration
Variable costs per unit
Total variable cost
Fixed Overheads :
Factory
Administration
Total cost of production
Selling price per unit @ Rs. 100
Profit

50%
5,000

60%
6,000

80%
8,000

Rs. Per units

Rs. Per units

Rs. Per units

Rs. 50

Rs. 51

Rs. 52.50