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Particulates Per unit

Variable direct expenses
Variable direct expenses

Variable direct expenses

Particulates
Per unit
(Tk) level of activity
Unit % Unit % Unit %
1. Prime cost :
Raw materials
Labour
Variable expenses
Total Prime cost
2. Variable overhead :
General
Selling expenses

Distribution expenses

Total variable cost

Variable direct expenses
Variable direct expenses

3. Marginal cost: (1+2)
4. Fixed cost :
General
Selling expenses
Distribution expenses
Administrative expenses
Total Fixed cost —
5. Total cost: (3+4)

Variable direct expenses

Flexible Budget (bgbxq ev‡RU)
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Particulates
Per unit
(Tk) level of activity
Unit % Unit % Unit %
1. Prime cost :
Direct materials
Direct labour

Variable direct expenses

Total Prime cost –
2. Variable overhead :
General expenses
Selling expenses
Distribution expenses
Total Variable overhead
3. Marginal cost : (1+2)
4. Sales variable :
5. Contribution : (4-3)
6. Fixed cost:-
General expenses
Distribution expenses
Selling expenses
Administrative expenses
Total Fixed cost –
7. Profit / Loss : ( 5-6 )

Variable direct expenses

2. Semi-Variable expenses :
Maintenance and repairs expenses
Selling expenses
Distribution expenses
Total Sami- Variable expenses —–
3. Fixed cost :
General expenses
Distribution expenses
Selling expenses
Administrative overhead
Total Fixed cost—
4. Total : ( 1+2+3 )
5. Sales :
6. Profit / Loss : ( 5 – 4 )

Variable direct expenses

Management Accounting (In English )
Chapter No-8
Flexible Budget (bgbxq ev‡RU)

Ex-01. The expenses budget for 10,000 units of a product in a factory is as follows:-
Items Per unit cost (Tk)
Raw materials 100
Labour 30
Variable overhead 30
Fixed overhead (Tk 1,00,000) 20
Variable expenses (direct) 10
Selling expenses (10% fixed) 25
Distribution expenses (20% fixed) 15
Administrative expenses (Tk 60,000) 10
Required:- Prepare a flexible budget for the production of 8,000 units and 5,000 units.

Variable direct expenses

Ex-02. The expenses budget for 12,000 units of a product in a factory is as follows:-
Items Per unit cost (Tk)
Raw materials 150
Labor 35
Variable overhead 32
Fixed overhead (Tk 1,00,000) 25
Variable expenses (direct) 12
Selling expenses (10% fixed) 30
Distribution expenses (20% fixed) 20
Administrative expenses (Tk 60,000) 15
Required:- Prepare a flexible budget for the production of 9,000 units and 6,000 units.

Variable direct expenses

Variable direct expenses
Variable direct expenses

Ex-03. Flexible budget in different Units.
The expense budget for 10,000 units in a factory is given below:-
Raw materials Tk 7.00 per unit
Direct labour Tk 2.50
Variable F/O overhead Tk 2.00
Fixed F/O overhead Tk 1.00
Selling expense (20% fixed) Tk 2.00
Administrative expense ( all fixed) Tk 1.00
The selling price is Tk 25.00 per unit
Prepare a flexible budget for 5,000 units and 7,000 units.

Variable direct expenses

Ex-02. Flexible manufacturing overhead budget incremental.
The golden company uses a flexible budget for manufacturing overhead based on direct labour hours. Variable manufacturing overhead costs per direct labour hour are as follows :
Indirect labour Tk 1.00
Indirect Materials Tk 0.60
Utilities Tk 0.40

Variable direct expenses

Fixed overhead costs per month are; Supervision Tk 4,000 depreciation Tk 1,500 and property taxes Tk 800. The company normally operates in a range of 8.000 – 10,000 direct labour hours per month.
Required: Prepare a monthly flexible Manufacturing overhead budget for the expected range of activity using increments of 2,000 hours.

Ex-04. Flexible budget-activity level.
The following costs are reported at a 50% activity level for a business:-
Direct materials Tk 5,000
Direct labour Tk 10,000
Variable Factory overhead Tk 4,000
Fixed factory overhead Tk 10,000
Semi variable factory overhead at 50% capacity is Tk 4,000 and it is likely to increase by Tk 500 for every 25% increase in capacity or part thereof. Prepare flexible budget at 75% and 100% activity level.

Variable direct expenses

Ex- 06. On the basis of 100% normal capacity (6,000 labor hours) prepare a Flexible Budget at 80%, 90%, 100% and 110% activity level,
Element’s of cost Fixed expenses (Tk) Variable expenses (Tk)
Fixed cost :-
Insurance 15,000
Taxes 40,000
Depreciation 18,000
Supervisor’s salaries 52,000
Variable expenses :
Indirect materials 4
Indirect wages 5

Variable direct expenses

Miscellaneous 6.50
Semi-variable expenses :
Maintenance 5,000 8
Power house 8,000 3.50
General 3,000 5.50

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