URGENT 7.(a)From the following data prepare a flexible budget for production of 40000 units clearly

showing variable cost, fixed cost, and total cost. Budgeted capacity output is 1 lakh units and

the budgeted cost per unit is given below: (7.5+7.5=15 marks)

Direct Material Rs 95/unit.

Direct Labour Rs 50/unit.

Production overhead (75% variable) Rs 40/unit.

Administration overhead (100% fixed) Rs 5/unit.

Selling overhead (20% fixed) Rs10/unit.

(b) Prepare a Production Budget for the six months period ending on 30th June,2017 and find total

Production.

Stocks for the budgeted period:

Product As on 01 January, 2017 As on 30 June, 2017

A 6,000 10,000

B 9,000 8,000

other relevant data:

Product Normal loss in production Requirement to fulfill sales programme (units)

A 4% 60,000

B 2% 50,000