Q.61. CA Co manufactures a single product and has drawn up the following flexed budget for the year.
60% 70% 80%
Rs Rs Rs
Direct materials 120,000 140,000 160,000
Direct labour 90,000 105,000 120,000
Production overheads 54,000 58,000 62,000
Other overheads 40,000 40,000 40,000
Total Cost 304,000 343,000 382,000
What would be the total cost in a budget that is prepared at the 77% level of activity?
(a) Rs 330,300
(b) Rs 370,300
(c) Rs 373,300
(d) Rs 377,300
60% 70% 80%
Rs Rs Rs
Direct materials 120,000 140,000 160,000
Direct labour 90,000 105,000 120,000
Production overheads 54,000 58,000 62,000
Other overheads 40,000 40,000 40,000
Total Cost 304,000 343,000 382,000
What would be the total cost in a budget that is prepared at the 77% level of activity?
(a) Rs 330,300
(b) Rs 370,300
(c) Rs 373,300
(d) Rs 377,300