Exercise 4: starting from 1st July 2003 The company produces one product-DETX II. Direct material costs OMR. 7 per unit. Direct labor averages OMR. 2.50 per hour and requires 1.6 hours to produce one unit of DETX II. Salesmen are paid a commission of Re 1 per unit sold. Fixed selling and administrative expenses amount to OMR. 85,000 per year. Manufacturing overhead is estimated in the following amounts under specified conditions of volume: Volume of production (in units) 1,20,000 1,50,000 > owon- Expenses: OMR. OMR Indirect material 2,64,000 3,30,000 Indirect labor 1,50,000 1,87,500 Inspection 90,000 1,12,500 Maintenance 84,000 1,02,000 2,34,000 1,98,000 Supervision 90,000 90,000 Depreciation of plant and equipment 94,000 94,000 Engineering services 9,70,000 11,50,000 Total manufacturing overhead Prepare a Total Cost Budget for 140,000 units of production. Flexible Budget (Practical Problems): The budget manager of Jupiter Electricals Limited is preparing flexible budget for the accounting year