Unformatted text preview: Illustrative Question Cont....
o) The product requires 0. 1 hour of skilled labor & 0.5 hour of unskilled labor the wage rate
deternuned as per the contract entered with trade union for the budget period is Rs 15 & Rs 9
per hour respectively for skilled and un skilled labor.
The budgeted fixed and variable factory overheads amounts to Rs 20,000 per month and Rs 1
per unit respectively
Administrative overhead budgeted is Rs 30,000 minimum with Rs 5,000 each for a slab of
5.000 units produced.
9) The budgeted selling and distribution overheads amounts to Rs 25,000 per month plus 2%
commission on sales.
10) 20% of the sales are made in cash. 50% of the credit sales are collected after one month and
remainder after two months of the sales.
1 1) Capital expenditure budget requires an outlay of Rs 130,000 in the month of February
Proceeds from the sales of old furniture receivable February amounts to Rs 10,000.
12) The company plans to sell parts of its trade investment worth Rs 15,000 during the month of
13) Interests and dividends expected to be received during the month of January amounts to Rs
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- Spring '17
- ALI SAAD