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3. The following is the details of the cost at 70% capacity of Aaron company. It is expected that the company can produce 25,000 units

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3. The following is the details of the cost at 70% capacity of Aaron company. It is expected that the company can produce 25,000 units in 3 months which represents 100% of the capacity. Supplies OMR 1400 Power OMR 7000 Insurance OMR 4200 Maintenance OMR 4900 Depreciation OMR 18,000 Supervision OMR 57.000 Total costs OMR 92,500 Units produced at 70% capacity 17,500 From the above table the first four costs are completely variable and the remaining are fixed. Prepare a flexible budget for 70% and 100% capacity. (2 Marks)

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