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SPECIAL ASSIGNMENT QUESTION 1 The expenses budgeted for production of 10,000 units in a factory are furnished below. Shs per unit 70 25 20

SPECIAL ASSIGNMENT QUESTION 1 The expenses budgeted for production of 10,000 units in a factory are furnished 

SPECIAL ASSIGNMENT QUESTION 1 The expenses budgeted for production of 10,000 units in a factory are furnished below. Shs per unit 70 25 20 10 5 13 7 5 155 Material Labour Variable overheads Fixed overheads (Shs.1,00,000) Variable expenses (direct) Selling expenses (10% fixed) Distribution expenses (20% fixed) Administration expenses (Shs.50,000) Total Required 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.(15marks)

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