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For the production of 10,000 electric automatic irons, the following are the budgeted expenses: Particulars Per Unit ($) Direct Material 60 Direct Labor 30 Direct
For the production of 10,000 electric automatic irons, the following are the budgeted expenses:
Particulars | Per Unit ($) |
Direct Material | 60 |
Direct Labor | 30 |
Direct Expenses | 05 |
Variable Factory Overhead | 25 |
Fixed Factory Overheads ($150,000) | 15 |
Selling Expenses | 15 |
Administration Expenses ($50,000 fixed for all levels of production) | 5 |
Distribution Expenses (20% Fixed) | 5 |
Total | 160 |
Prepare a budget of the production of 6000, 7000, and 8000 irons showing distinctly the marginal cost and the total cost.
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