budget 2

	B	C	E	F	G	J	K	L	M	N	O	P	Q
1	A) FIRST METHOD (COST SHEET FORMAT)
2	Flexible Budget
3
4	Particulars					10000		6000		7000		8000
5	Particulars					Per Unit	Total	Per Unit	Total	Per Unit	Total	Per Unit	Total
6
7			Material			60.00	600,000.00	60.00	360,000.00	60.00	420,000.00	60.00	480,000.00
8			Labour			30.00	300,000.00	30.00	180,000.00	30.00	210,000.00	30.00	240,000.00
9			Variable Expenses (Direct)			5.00	50,000.00	5.00	30,000.00	5.00	35,000.00	5.00	40,000.00
10
11				a) Prime Cost		95.00	950,000.00	95.00	570,000.00	95.00	665,000.00	95.00	760,000.00
12
13	Add: Factory Overhead
14			Variable Overhead			25.00	250,000.00	25.00	150,000.00	25.00	175,000.00	25.00	200,000.00
15			Fixed over head			15.00	150,000.00	25.00	150,000.00	21.43	150,000.00	18.75	150,000.00
16
17				b) Work Cost		135.00	1,350,000.00	145.00	870,000.00	141.43	990,000.00	138.75	1,110,000.00
18
19	Add: Office and Administrative Overhead
20			Administrative overhead			5.00	50,000.00	8.33	50,000.00	7.14	50,000.00	6.25	50,000.00
21
22				c) Cost of Production		140.00	1,400,000.00	153.33	920,000.00	148.57	1,040,000.00	145.00	1,160,000.00
23
24	Add: Selling and Distribution Overhead
25		Selling Overhead
26				Fixed		1.50	15,000.00	2.50	15,000.00	2.14	15,000.00	1.88	15,000.00
27				Variable		13.50	135,000.00	13.50	81,000.00	13.50	94,500.00	13.50	108,000.00
28
29		Distribution Overhead
30				Fixed		1.00	10,000.00	1.67	10,000.00	1.43	10,000.00	1.25	10,000.00
31				Variable		4.00	40,000.00	4.00	24,000.00	4.00	28,000.00	4.00	32,000.00
32
33						160.00	1,600,000.00	175.00	1,050,000.00	169.64	1,187,500.00	165.63	1,325,000.00
34
35
36
37
38		Calculation of Fixed and Variable expenses:
39		Selling overhead (total) for Given Volume of Output					150,000.00
40
41					Fixed Selling Expenses	(10% Fixed)	15,000.00
42
43					variable Selling Expenses (90% Variable)		135,000.00
44
45					Variable Selling Expenses (Per Unit)		= 135000 / 10000
46
47							= 13.5
48
49
50		Distribution overhead (total) for Given Volume of Output					50,000.00
51
52					Fixed Selling Expenses	(20% Fixed)	10,000.00
53
54					variable Selling Expenses (80% Variable)		40,000.00
55
56					Variable Selling Expenses (Per Unit)		= 40000 / 10000
57
58							= 4
59
60
61	B) SECOND METHOD (MARGINAL AND FIXED COST SHOWN SEPARATELY)
62	Flexible Budget
63
64	Particulars					10000		6000		7000		8000
65	Particulars					Per Unit	Total	Per Unit	Total	Per Unit	Total	Per Unit	Total
66
67			Material			60.00	600,000.00	60.00	360,000.00	60.00	420,000.00	60.00	480,000.00
68			Labour			30.00	300,000.00	30.00	180,000.00	30.00	210,000.00	30.00	240,000.00
69			Variable Expenses (Direct)			5.00	50,000.00	5.00	30,000.00	5.00	35,000.00	5.00	40,000.00
70			Variable Overhead			25.00	250,000.00	25.00	150,000.00	25.00	175,000.00	25.00	200,000.00
71			Selling Overhead (Variable)			13.50	135,000.00	13.50	81,000.00	13.50	94,500.00	13.50	108,000.00
72			Distribution Overhead (Variable)			4.00	40,000.00	4.00	24,000.00	4.00	28,000.00	4.00	32,000.00
73
74				a) Total Marginal Cost		137.50	1,375,000.00	137.50	825,000.00	137.50	962,500.00	137.50	1,100,000.00
75
76			Fixed Factory overhead			15.00	150,000.00	25.00	150,000.00	21.43	150,000.00	18.75	150,000.00
77			Administrative Overhead			5.00	50,000.00	8.33	50,000.00	7.14	50,000.00	6.25	50,000.00
78			Selling overhead (Fixed)			1.50	15,000.00	2.50	15,000.00	2.14	15,000.00	1.88	15,000.00
79			Distribution overhead (Fixed)			1.00	10,000.00	1.67	10,000.00	1.43	10,000.00	1.25	10,000.00
80				b) Total Fixed Cost		22.50	225,000.00	37.50	225,000.00	32.14	225,000.00	28.13	225,000.00
81
82				Total cost (a + b)		160.00	1,600,000.00	175.00	1,050,000.00	169.64	1,187,500.00	165.63	1,325,000.00
83
84
85
86		Calculation of Fixed and Variable expenses:
87		Selling overhead (total) for Given Volume of Output					150,000.00
88
89					Fixed Selling Expenses	(10% Fixed)	15,000.00
90
91					variable Selling Expenses (90% Variable)		135,000.00
92
93					Variable Selling Expenses (Per Unit)		= 135000 / 10000
94
95							= 13.5
96
97
98		Distribution overhead (total) for Given Volume of Output					50,000.00
99
100					Fixed Selling Expenses	(20% Fixed)	10,000.00