The expenses for the budget production of 10000 units in a factory are furnished below : Material 70 /unit Labour 25/unit Variable overhead

Fixed overhead(1,00,0000) 20/unit

Variable overhead (Direct) 5/unit

Selling expenses (10% Fixed ) 13/unit

Distribution expenses (20%fixed ) 7/unit

Administration expenses (50,000) 5/unit

Total cost per unit(to make, to sell) 155/unit

Prepare budget for production of

a) 8000 units

b) 6000 units (indicate cost per unit at both the levels )

Assume that administration expenses are fixed for all the levels of production