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At 50% capacity At 60% capacity Production unit 12,500 15,000 RM RM Variable Cost Material 5,000 6,000 Labour 15,000 18,000 Semi-Variable Cost Electricity 32,875 35,000

At 50% capacity

At 60% capacity

Production unit

12,500

15,000

RM

RM

Variable Cost

Material

5,000

6,000

Labour

15,000

18,000

Semi-Variable Cost

Electricity

32,875

35,000

Maintenance

2,850

3,000

Fixed Cost

Depreciation

16,500

16,500

Insurance

4,500

4,500

Salaries

15,000

15,000

Utilities

14,000

14,000

Total Cost

105,725

112,000

Profit in any year is budgeted to be 20% of total cost.

Required:

  1. Prepare a flexible budget at 70% capacity on the basis of the given data.

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