Q.5 Answer the following with suitable illustrations: I. Discuss diagrammatically the flow of costs II. Discuss the direct and indirect cost classification vis--vis cost classification on the basis of variability III. Master Budgeting IV. The PLN Co. presents the following static budgets for 4,000 units and 6,000 units activity levels for October 2015: Overhead A Rs. 12/hr. x 2 hr./ unit Overhead B 4,000 units Activity Level 6,000 units Rs. 96,000 Rs. 1,44,000 Rs. 1,90,000 Rs. 1,40,000 Overhead C was omitted to be listed out. It is a fixed plant overhead, estimated at Rs. 12.50/hr. at 4,000 units activity level. This has to also feature in the flexible budget. The actual production was 5,000 units and 9,600 hours were needed for production. Prepare a statement showing the Flexible Budget amount of each overhead to enable appropriate comparison with the actual figures. [14]