Model 8: Factory-overheads budget
The budget manager of X Ltd is preparing a budget for the accounting year starting from 1 April 2009.
As a part of the budget operations, some items of factory overhead costs have been estimated by him under specified conditions of volume as follows:
|
Volume of production in (units) |
60,000 Rs. |
75,000 Rs. |
|
Expenses: |
||
|
Indirect materials |
1,32,000 |
1,65,000 |
|
Indirect labour |
75,000 |
93,750 |
|
Maintenance |
42,000 |
51,000 |
|
Supervision |
99,000 |
1,17,000 |
|
Engineering services |
47,000 |
47,000 |
You are required to calculate the cost of factory overhead items given above at 80,000 units of production.