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Illustration 3.5 (Marginal and Total Cost Basis) ! For the production of 10,000 electric automatic irons, the following are the budgeted expenses: Per unit Rs. Direct Material 60 Direct Labour 30 Direct Expenses Variable Factory Overhead . Fixed Factory Overheads (Rs. 1,50.000) Selling Expenses (10% fixed) Administration Expenses (Rs. 50,000 fixed for all levels of production) Distribution Expenses (20% foxed) Total Prepare a budget for the production of 6,000; 7,000 and 8,000 irons showing distinctly the marginal cost and the total cost