From the information given below prepare flexible budget for 60% and 80% capacities and fix the total overhead rates as a per cent on direct wages at these capacities:

Particulars At 75%

Variable Overheads:

Indirect material 7,500 Indirect Labour 22,500 Semi-Variable Overheads:

Electricity (40% Fixed) 37,500 Repairs and maintenance

(80% fixed) 3,750 Fixed Overheads:

Salaries 2,00,000 Insurance 5,000 Depreciation 25,000 Estimated direct wages Rs. 40,250 at 75% capacity.

[Ans.: At 60% Capacity: Total overheads Rs. 2,90,600, Total overheads rates = 903%.

At 80% Capacity: Total overheads Rs. 3,04,800, Total overhead rates = 710%]