Flexible Budget

Draft a flexible budget for overhead expenses based on

following information and determine the overhead rates at 70%
80% and 90% plant capacity.

Particulars 70%
Variable overheads
Indirect labour 21000
Stores 7000
Fixed overheads
Depreciation 22000
Insurance 6000
Salaries 20000
Semi variable 40000
Power
Fixed 30%
Variable 70%
Repairs 4000
Fixed 80%
Variable 20%

Particulars 70% 80% 90%

Variable overheads
Indirect labour 21000 24000 27000
Stores 7000 8000 9000
Fixed overheads
Depreciation 22000 22000 22000
Insurance 6000 6000 6000
Salaries 20000 20000 20000
Semi variable
Power(40000)
Fixed 30% 12000 12000 12000
Variable 70% 23000 28000 33000
Repairs (4000)
Fixed 80% 3200 3200 3200
Variable 20% 300 800 1300