Indirect Labor	4. 95.000
Salesmen's Salary&Expenses	1.45.000
SundryExpenses	l.30.000
	8.95.000
VariableExpenses at50%capacity
Materials	12. 00.000
Labor	12. 80.000
Sales men's Commission	1.90.000
	26.70.000

Semi-variableexpenses remainconstantbetween 41%and 70%activity.increase by10%of the above figures between 71%and80%activity and increase by 15% of the above figures between81 %and100%activity. Fixed expenses remain constant whatever,maybe the levelof activity. Sales at60%activity areRS.51. 00.000,at80%activity areRs-68. 00.000 andat 100%activityis Rs.85. 00.000

Fromthe following particulars. prepareaflexible budgetfor thethree months ending 30 September showing the estimated sales. sales cost and profit for 60%. 80% and 100% activity. Assume that all items producedaresold.

Fixed Expenses		Rs.
Management Salaries		4. 20.000
Rent and Taxes		2.80.000
		3. 50.000
Depreciation on machinery
Sundry officecost		4.45.000
		14.95.000
Semi-Variable Expenses	at 50% capacity
Plant maintenance		1.25.000