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Old mathjax Webview within 5 minutes or else skip please 34 Bharat Electronics Ltd. furnishes the following information for 10,000 TV valves manufactured during the year, 2011 : Rs. Rs. Materials 90,000 Clerical salaries and 33,500 Direct wages 60,000 management expenses 5,500 Power and consumable stores 12,000 Selling expenses 2,000 Factory indirect wages 15,000 Sale proceeds of scraps Lighting of factory 5,500 Plant repairs, maintenance Defective work 3,000 and depreciation 11,500 (cost of rectification) The net selling price was Rs. 31.60 per unit and all the units were sold. As from 1st January, 2012, the selling price was reduced to Rs. 31.00 per unit. It was estimated that production could be increased in 2012 by 50% utilising spare capacity. Rates for materials and direct wages will increase by 10%. You are required to prepare : (a) Cost sheet for the year, 2011, showing various elements of cost per unit; and (b) Estimated cost and profit for 2012 assuming that 15,000 units will be produced and sold during the year. Factory overheads are recovered as a percentage of direct wages and office and selling expenses as a percentage of works cost. (Apply the same respective percentages as in the previous year.)