1. Handout 2 MA Problem 4
Problem 4:
Rs.500
250
300
600
200
175
1,600
Total cost
80%
Rs.16,000
9,000
500
1,450
300
1,400
280
175
1,600
80%
Rs.16,000
9,000
500
1,450
300
1,400
280
175
1,600
100%
Rs.20,000
11,250
500
1,750
300
1,600
300
175
1,600
Fixed
direct material
direct labor
supervision
indirect material
property tax
maintenance
power
insurance
depreciation
Required:
Prepare a flexible budget at 92% level.
Solution:
Fixed
direct material
direct labor
supervision
Rs.500
indirect material
250
property tax
300
maintenance
600
power
200
insurance
175
depreciation
1,600
100%
1,500
250
1,750/=
92%
1,380
250
1,630/=
100%
Rs.20,000
11,250
500
1,750
300
1,600
300
175
1,600
92%
18,400
10,350
500
1,630
300
1,520
292
175
1,600
34,767/=