Flexible budget of Wardha
particulars 50% 60% 75% 90%
fixed cost
salaries ₹ 84,000 ₹ 84,000 ₹ 84,000 ₹ 84,000
rent and rstes ₹ 56,000 ₹ 56,000 ₹ 56,000 ₹ 56,000
depirication ₹ 70,000 ₹ 70,000 ₹ 70,000 ₹ 70,000
other adm exp ₹ 80,000 ₹ 80,000 ₹ 80,000 ₹ 80,000
Total fixed cost(A) ₹ 290,000 ₹ 290,000 ₹ 290,000 ₹ 290,000
variable costs
materials ₹ 240,000 ₹ 288,000 ₹ 360,000 ₹ 432,000
labour ₹ 256,000 ₹ 307,200 ₹ 384,000 ₹ 460,800
other expenses ₹ 38,000 ₹ 45,600 ₹ 57,000 ₹ 68,400
total variable cost(B) ₹ 534,000 ₹ 640,800 ₹ 801,000 ₹ 961,200
total cost(A+B) ₹ 824,000 ₹ 930,800 ₹ 1,091,000 ₹ 1,251,200
total sales ₹ 791,666.67 ₹ 950,000.00 ₹ 1,150,000.00 ₹ 1,375,000.00
profit ₹ -32,333.33 ₹ 19,200.00 ₹ 59,000.00 ₹ 123,800.00
100% Particulars
Fixed costs
₹ 84,000 salaries
₹ 56,000 rent and rates
₹ 70,000 depriciation
₹ 80,000 other administrative expenses
₹ 290,000 Total fixed costs
variable cost
₹ 480,000 materials
₹ 512,000 labour
₹ 76,000 other expenses
₹ 1,068,000 Total variable cost
Total cost
₹ 1,358,000 sales
₹ 1,525,000.00 profit
₹ 167,000.00
50% 60% 75% 90% 100%
₹ 84,000 ₹ 84,000 ₹ 84,000 ₹ 84,000 ₹ 84,000
₹ 56,000 ₹ 56,000 ₹ 56,000 ₹ 56,000 ₹ 56,000
₹ 70,000 ₹ 70,000 ₹ 70,000 ₹ 70,000 ₹ 70,000
₹ 80,000 ₹ 80,000 ₹ 80,000 ₹ 80,000 ₹ 80,000
₹ 290,000 ₹ 290,000 ₹ 290,000 ₹ 290,000 ₹ 290,000
₹ 240,000 ₹ 288,000 ₹ 360,000 ₹ 432,000 ₹ 480,000
₹ 256,000 ₹ 307,200 ₹ 384,000 ₹ 460,800 ₹ 512,000
₹ 38,000 ₹ 45,600 ₹ 57,000 ₹ 68,400 ₹ 76,000
₹ 534,000 ₹ 640,800 ₹ 801,000 ₹ 961,200 ₹ 1,068,000
₹ 824,000 ₹ 930,800 ₹ 1,091,000 ₹ 1,251,200 ₹ 1,358,000
₹ 791,667 ₹ 950,000 ₹ 1,150,000 ₹ 1,375,000 ₹ 1,525,000
₹ -32,333 ₹ 19,200 ₹ 59,000 ₹ 123,800 ₹ 167,000
Flexible budget for various productivity
particulars 70% 80% 90%
fixed overheads
depriciation 11000 11000 11000
insurance 3000 3000 3000
salaries 10000 10000 10000
total fixed o/h 24000 24000 24000
Semi variable overheads
power(30%fixed,70% variable)
fixed 6000 6000 6000
variable 12250 14000 15750
repairs and maintainance
fixed 1200 1200 1200
variable 700 800 900
total semi-variable o/h 20150 22000 23850
variable o/h
indirect labour 10500 12000 13500
store sincluding spares 3500 4000 4500
total variable o/h 14000 16000 18000
total cost(A+B+C) 58150 62000 65850
estimated labour hours 108500 124000 139500
cost per labour hour 0.535945 0.5 0.472043
repair nd maninaiance should be on adhoc bases
particulars 70% 80% 90%
Fixed overheads
depriciation ₹ 11,000.00 ₹ 11,000.00 ₹ 11,000.00
Insurance ₹ 3,000.00 ₹ 3,000.00 ₹ 3,000.00
salaries ₹ 10,000.00 ₹ 10,000.00 ₹ 10,000.00
Total fixed cost ₹ 24,000.00 ₹ 24,000.00 ₹ 24,000.00
Semi-Variable cost
Power
Fixed ₹ 6,000.00 ₹ 6,000.00 ₹ 6,000.00
Variable ₹ 12,250.00 ₹ 14,000.00 ₹ 15,750.00
Repairs
Fixed ₹ 1,200.00 ₹ 1,200.00 ₹ 1,200.00
Variable ₹ 700.00 ₹ 800.00 ₹ 900.00
Total semi-variable cost ₹ 20,150.00 ₹ 22,000.00 ₹ 23,850.00
Variable cost
Indirect labour ₹ 10,500.00 ₹ 12,000.00 ₹ 13,500.00
stores including spares ₹ 3,500.00 ₹ 4,000.00 ₹ 4,500.00
Total variable cost ₹ 14,000.00 ₹ 16,000.00 ₹ 18,000.00
Total cost ₹ 58,150.00 ₹ 62,000.00 ₹ 65,850.00
direct labour hours ₹ 108,500.00 ₹ 124,000.00 ₹ 139,500.00
cost per labour hour 0.53594470046 0.5 0.47204301075
partiuclars 50 65 75
fixed expenses
wages and salaries ₹ 950,000 ₹ 950,000 ₹ 950,000
rent,rate & taxes ₹ 660,000 ₹ 660,000 ₹ 660,000
depriciation ₹ 740,000 ₹ 740,000 ₹ 740,000
sundry admin expenses ₹ 650,000 ₹ 650,000 ₹ 650,000
total fixed expenses ₹ 3,000,000 ₹ 3,000,000 ₹ 3,000,000
semi-variable expsenses at 50% capacity 10% increase
mainatiancxe & repiars ₹ 350,000 ₹ 350,000 ₹ 385,000
indirect labour ₹ 790,000 ₹ 790,000 ₹ 869,000
sales dept , salaries ₹ 380,000 ₹ 380,000 ₹ 418,000
sundry admin salaries ₹ 280,000 ₹ 280,000 ₹ 308,000
total semi variable cost ₹ 1,800,000 ₹ 1,800,000 ₹ 1,980,000
variable expenses
material ₹ 2,170,000 ₹ 2,821,000 ₹ 3,255,000
labour ₹ 2,040,000 ₹ 2,652,000 ₹ 3,060,000
other expenses ₹ 790,000 ₹ 1,027,000 ₹ 1,185,000
total variable cost ₹ 5,000,000 ₹ 6,500,000 ₹ 7,500,000
total cost ₹ 9,800,000 ₹ 11,300,000 ₹ 12,480,000
total sales ₹ 10,000,000 12000000 ₹ 15,000,000
profit ₹ 200,000 ₹ 700,000 ₹ 2,520,000
Particulars 50%
90 100 Wages ₹ 950,000
Rent,rate & taxes ₹ 660,000
₹ 950,000 ₹ 950,000 Deprciation ₹ 740,000
₹ 660,000 ₹ 660,000 Sundry Admin Expenses ₹ 650,000
₹ 740,000 ₹ 740,000 Total fixed cost ₹ 3,000,000
₹ 650,000 ₹ 650,000 Semi-Variable
₹ 3,000,000 ₹ 3,000,000 Miantainance& repair ₹ 350,000
20% increase 20% increase indirect Labour ₹ 790,000
₹ 420,000 ₹ 420,000 Sales dept.salaries etc ₹ 380,000
₹ 948,000 ₹ 948,000 Sundry Admin salaries ₹ 280,000
₹ 456,000 ₹ 456,000 Total semi-variable cost ₹ 1,800,000
₹ 336,000 ₹ 336,000 Variable
₹ 2,160,000 ₹ 2,160,000 material ₹ 2,170,000
labour ₹ 2,040,000
₹ 3,906,000 ₹ 4,340,000 other expenses ₹ 790,000
₹ 3,672,000 ₹ 4,080,000 Total variable cost ₹ 5,000,000
₹ 1,422,000 ₹ 1,580,000 Total cost ₹ 9,800,000
₹ 9,000,000 ₹ 10,000,000 Sales ₹ 10,000,000
₹ 14,160,000 ₹ 15,160,000 net profit ₹ 200,000
18000000 ₹ 20,000,000
₹ 3,840,000 ₹ 4,840,000
60% 75% 90% 100%
₹ 950,000 ₹ 950,000 ₹ 950,000 ₹ 950,000
₹ 660,000 ₹ 660,000 ₹ 660,000 ₹ 660,000
₹ 740,000 ₹ 740,000 ₹ 740,000 ₹ 740,000
₹ 650,000 ₹ 650,000 ₹ 650,000 ₹ 650,000
₹ 3,000,000 ₹ 3,000,000 ₹ 3,000,000 ₹ 3,000,000
₹ 350,000 ₹ 385,000 ₹ 420,000 ₹ 420,000
₹ 790,000 ₹ 869,000 ₹ 948,000 ₹ 948,000
₹ 380,000 ₹ 418,000 ₹ 456,000 ₹ 456,000
₹ 280,000 ₹ 308,000 ₹ 336,000 ₹ 336,000
₹ 1,800,000 ₹ 1,980,000 ₹ 2,160,000 ₹ 2,160,000
₹ 2,604,000 ₹ 3,255,000 ₹ 3,906,000 ₹ 4,340,000
₹ 2,448,000 ₹ 3,060,000 ₹ 3,672,000 ₹ 4,080,000
₹ 948,000 ₹ 1,185,000 ₹ 1,422,000 ₹ 1,580,000
₹ 6,000,000 ₹ 7,500,000 ₹ 9,000,000 ₹ 10,000,000
₹ 10,800,000 ₹ 12,480,000 ₹ 14,160,000 ₹ 15,160,000
₹ 12,000,000 ₹ 15,000,000 ₹ 18,000,000 ₹ 20,000,000
₹ 1,200,000 ₹ 2,520,000 ₹ 3,840,000 ₹ 4,840,000
particulars 10000 12000 14000 16000
Direct material ₹ 300,000 ₹ 360,000 ₹ 420,000 ₹ 480,000
direct labour ₹ 150,000 ₹ 180,000 ₹ 210,000 ₹ 240,000
Variable overhead ₹ 125,000 ₹ 150,000 ₹ 175,000 ₹ 200,000
Fixed overhead ₹ 75,000 ₹ 75,000 ₹ 75,000 ₹ 75,000
selling expenses
fixed ₹ 7,500 ₹ 7,500 ₹ 7,500 ₹ 7,500
variable ₹ 67,500 ₹ 67,500 ₹ 67,500 ₹ 67,500
Administration expenses ₹ 25,000 ₹ 25,000 ₹ 25,000 ₹ 25,000
Dsirtibution expenses ₹ 25,000 ₹ 30,000 ₹ 35,000 ₹ 40,000
Fixed ₹ 5,000 ₹ 5,000 ₹ 5,000 ₹ 5,000
Variable ₹ 20,000 ₹ 24,000 ₹ 28,000 ₹ 32,000
Total cost ₹ 800,000 ₹ 924,000 ₹ 1,048,000 ₹ 1,172,000
particulars 10000 12000 14000 16000
Direct material ₹ 30 ₹ 30 ₹ 30 ₹ 30
direct labour ₹ 15 ₹ 15 ₹ 15 ₹ 15
Variable overhead ₹ 12.50 ₹ 12.50 ₹ 12.50 ₹ 12.50
Fixed overhead ₹ 7.50 ₹ 6.25 ₹ 5.36 ₹ 4.69
selling expenses
fixed ₹ 0.75 ₹ 0.63 ₹ 0.54 ₹ 0.47
variable ₹ 6.75 ₹ 5.63 ₹ 4.82 ₹ 4.22
Administration expenses ₹ 2.50 ₹ 2.08 ₹ 1.79 ₹ 1.56
Dsirtibution expenses ₹ 2.50 ₹ 2.50 ₹ 2.50 ₹ 2.50
Fixed ₹ 0.50 ₹ 0.42 ₹ 0.36 ₹ 0.31
Variable ₹ 2 ₹ 2 ₹ 2 ₹ 2
Total cost ₹ 80 ₹ 77 ₹ 75 ₹ 73
Particulars 2000 2500 3000
material cost 56000 70000 84000
labour cost 24000 30000 36000
power 4000
fixed 800 800 800
Variable 2560 3200 3840
Repairs 6000
fixed 1500 1500 1500
variable 3600 4500 5400
Stores 1600 2000 2400
inspection 1200
fixed 960 960 960
variable 192 240 288
Depriciation 16000 20000 24000
Administration overhead 10800
fixed 8640 8640 8640
Variable 1728 2160 2592
Selling overhead 6000
fixed 3000 3000 3000
Variable 2400 3000 3600
Total cost 122980 150000 177020
Particulars 60% 70% 80%
Sales 2400000 2800000 3200000
Selling price 100 100 100
no.of units 24000 28000 32000
Variable 1440000 1680000 1920000
Semi-Variable
fixed 180000 180000 180000
Variable 30000 35000 40000
Fixed cost 300000 300000 400000
Total cost 1950000 2195000 2540000
net profit 450000 605000 660000
Decreasing sales ₹ 95.00 95 95
New sales ₹ 2,280,000.00 ₹ 2,660,000.00 ₹ 3,040,000.00
New profit ₹ 330,000.00 ₹ 465,000.00 ₹ 500,000.00
Contribution ₹ 810,000.00 new sales-( variable cost+variabl semi)
no.of units 24000
contribution/unit ₹ 33.75
₹ 28,444.44 total fixed cost+desired profit(old)/cpntribution/unit
Particulars 2000 2500 3000
sales
