Flexible budget for various production capacity

Particulars Productivity
50% 60% 75% 90% 100%
Fixed costs
Wages and salaries 9.5 9.5 9.5 9.5 9.5
Rent and sales 6.6 6.6 6.6 6.6 6.6
Depreciation 7.4 7.4 7.4 7.4 7.4
Sundry admin expenses 6.5 6.5 6.5 6.5 6.5
Total fixed cost 30 30 30 30 30
Semi-variable cost
Maintenance and repairs 3.5 3.5 3.85 4.2 4.2
Indirect labour 7.9 7.9 8.69 9.48 9.48
Sales department salaries 3.8 3.8 4.18 4.56 4.56
Sundry admin salaries 2.8 2.8 3.08 3.36 3.36
Total semi-variable 18 18 19.8 21.6 21.6
Variable
Material 21.7 26.04 32.55 39.06 43.4
Labour 20.4 24.48 30.6 36.72 40.8
Other expenses 7.9 9.48 11.85 14.22 15.8
Total variable 50 60 75 90 100
Total cost 98 108 124.8 141.6 151.6
Profit 2 12 25.2 38.4 48.4
Total sales 100 120 150 180 200
 Flexible budget for various levels of production

Particulars Per pair 6,000 Per pair 8,000 Per pair 10,000

Materials 140 840000 140 1120000 140 1400000

Labour 50 300000 50 400000 50 500000

Variable Overheads 40 240000 40 320000 40 400000

Fixed overheads 200,000 200,000 200,000

Variable expenses 10 60000 10 80000 10 100000

Semivariable expenses

Selling expenses 260000 260000 260000

Fixed 26000 26000 26000

Variable 140400 187200 234000

Distribution expenses 140000 140000 140000

Fixed 28000 28000 28000

Variable 67200 89600 112000

Administration expenses 100,000 100,000 100,000

Total cost 333.6 2001600 318.85 2550800 310 3100000

Per pair 12,000

140 1680000

50 600000

40 480000

200,000

10 120000

260000

26000

280800

140000

28000

134400

125000

306.18 3674200
 Flexible budget for various levels of production
Particulars Productivity
70% 80% 90%
Fixed Overheads
Depreciation 11,000 11,000 11,000
Insurance 3,000 3,000 3,000
Salaries 10,000 10,000 10,000
Semi variable cost
Power 20,000
Fixed 6000 6000 6000
Variable 12250 14000 15750
Repair and maintenance 2000
Fixed 1200 1200 1200
Variable 700 800 900
Variable overheads
Indirect labour 10500 12,000 13500
Stores including spares 3500 4,000 4500
Total Cost 58,150 62,000 65,850
Total Labour cost 108500 124000 139500
Cost/labour hour 0.54 0.50 0.47