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  • Name: Komal R. Nawal Roll No.: 25 Class: M-Com (Iiird Sem)

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    Himani S. Jain
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    The document provides a flexible budget at various production capacity levels (50%, 60%, 70%, 90%, 100%) for a company with a standard cost of Rs. 35 per unit and semi-variable overhead costs that increase by Rs. 4,000 for every 1,000 unit change in output. It calculates the budgeted sales, variable expenses, fixed expenses, total budgeted costs and estimated profits at each capacity level. The flexible budget shows estimated profits increasing as production capacity increases, ranging from Rs. 45,000 at 50% capacity to Rs. 200,000 at full 100% capacity.

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    Budget Komal

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    The document provides a flexible budget at various production capacity levels (50%, 60%, 70%, 90%, 100%) for a company with a standard cost of Rs. 35 per unit and semi-variable overhead costs that increase by Rs. 4,000 for every 1,000 unit change in output. It calculates the budgeted sales, variable expenses, fixed expenses, total budgeted costs and estimated profits at each capacity level. The flexible budget shows estimated profits increasing as production capacity increases, ranging from Rs. 45,000 at 50% capacity to Rs. 200,000 at full 100% capacity.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPSX, PDF, TXT or read online from Scribd
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    8 views7 pages

    Name: Komal R. Nawal Roll No.: 25 Class: M-Com (Iiird Sem)

    Uploaded by

    Himani S. Jain
    The document provides a flexible budget at various production capacity levels (50%, 60%, 70%, 90%, 100%) for a company with a standard cost of Rs. 35 per unit and semi-variable overhead costs that increase by Rs. 4,000 for every 1,000 unit change in output. It calculates the budgeted sales, variable expenses, fixed expenses, total budgeted costs and estimated profits at each capacity level. The flexible budget shows estimated profits increasing as production capacity increases, ranging from Rs. 45,000 at 50% capacity to Rs. 200,000 at full 100% capacity.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPSX, PDF, TXT or read online from Scribd
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    of 7

    Name : Komal R. Nawal Roll No.

    : 25 Class : M-Com(IIIrd Sem)

    1. It is a technique of cost accounting, aims at cost reduction and cost control; 2. It is detailed plan of action drawn in advance for specific period; 3. It is the result of thinking in advance of the performance expected during a specific during a period

    A financial and quantitative statement prepared prior to defined period of time, the policy to be pursued during that period for the purpose of attaining a given objective.

    1. According to Time Factor; 2. According to Functions; 3. According to Flexibility;

    Problem:

    The statement given below gives the flexible budget at 100% capacity. Capacity 100% = 10,000 units The estimated cost per unit is as under:Direct Material = Rs. 15 Direct Wages = Rs.10 Direct Expenses = Rs. 04 Variable Overheads = Rs. 06 Total Cost = Rs. 35 The fixed overheads are estimated at Rs. 1,00,000/The semi-variable overheads are Rs. 50,000/- at 100% capacity i.e. 10,000 units. The semi-variable expenses vary in stages of Rs. 4,000/- for each change in output of 1,000 units. Selling price is Rs. 70/- per unit. Prepare Flexible Budget at 50%, 60%, 70%, 90% and 100% capacities and also find out estimated profit.

    Flexible Budget
    Particulars 50% 60% 70% 90%

    100%

    Sales in Units
    Sales in Rs. [Rs. 70 P.U. X No. Of Units.] Variable Expenses: Direct Material

    5,000

    6,000

    7,000

    9,000

    10,000

    350,000 420,000 490,000 630,000 700,000

    75,000

    90,000 105,000 135,000 150,000

    [Rs. 15 P.U. X No. Of Units.] Direct Wages


    [Rs. 10 P.U. X No. Of Units.] Direct Expenses [Rs. 4 P.U. X No. Of Units.] 20,000 24,000 28,000 36,000 40,000

    50,000

    60,000

    70,000

    90,000 100,000

    Variable Overheads:[Rs. 6 P.U. X No. Of Units.] Fixed Overheads:-

    30,000

    36,000

    42,000

    54,000

    60,000

    100,000 100,000 100,000 100,000 100,000

    Particulars

    50%

    60%

    70%

    90%

    100%

    Semi - Variable Overheads [For each change in o/p of 1000 units expenses vary of Rs. 4,000/-] Total Budgeted Cost Profit [Sales-Total Budgeted Cost]

    30,000

    34,000

    38,000

    46,000

    50,000

    305,000 344,000 383,000 461,000 500,000 45,000 76,000 107,000 169,000 200,000

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