managment accounting

Exercise 1: 10 The expenses budgeted for production of 10,000 units in a factory are furnished below: OMR. per unit Material 70 Labor 25 Variable overheads 20 Fixed overheads (OMR. 1,00,000) Variable expenses (direct) 5 Selling expenses (10% fixed) 13 Distribution expenses (20% fixed 7 Administration expenses (OMR. 50(000) 5 Total 155 Prepare a budget for the production of (a) 8,000 units, and (b) 6,000 units. Assume that administration expenses are rigid for all levels of production