Problem 2 The production cost of Chandra Ltd. during the year 1993 is as follows: Rs. Direct Materials 1,20,000 Direct wages 80,000 40,000 Fixed costs Variable costs 80,000 It is estimated, during the year 1994, the labour cost hour reduces from Rs. 3 to Rs. 2.50, labour hours increase by 33/3rd and there won't be any change in the capacity, direct materials and other overheads. Prepare production budget for the year 1994 and also calculate percentage of costs on direct wages